HISTERY 
DEPART MENT 


|The War es 


eins THE 


Fixing the Blames v's oF HLINOIS 


27 JAN1915 
Money Ring Decrees War 


| $500,000 Bought Control of Nation 


Japan Arming School Girls 











fe etmany’ s Unequalled Record 


Nn Russian Autocracy and Its Blood Bath 








Lord Kitchener’s Soothing Syrup 


Operations of Foreign Exchange 
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ywWaterways and Commerce 
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KAISER WILHELM Il 


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Foreword 
War Would End If Money Kings Willed It 


Having called to her aid South African Negroes, 
the brown men of India and the browner men of 
Japan, England is now resorting to every device to 


Bs, mbroil the people of the United States in the 


alsat3 ry. 


‘oney Clique’ s inhuman attempt to crush Ger- 
many and maintain the money control of the world. 


In line with this, a partner of the banking house of 


J. Pierpont Morgan & Co. has declared that Amer- 
ica must help the Allies, and that declaration has 
been followed by a propaganda in the daily news- 
papers, calculated to inflame the people to action 
against their own best interests. Of this news- 
paper propaganda George Bernard Shaw writes: 

“The appalling danger of a daily deluge of cheap 
newspapers written by nameless men and women 
whose scandalously low payment is a guarantee of 
their ignorance and servility to the financial de- 
partment, controlled by a money class, which has 
large direct interests in war as a method of raising 
the price of money, the only commodity the money 
class has to sell. Plutocracy makes for war be- 
cause it offers prizes to plutocrats.” 

This book is written to warn the people of the 
United States that they have at all times been mis- 
led and are today being misled by an international 
group of money dealers whose machinations have 
brought about this terrible war and whose greed 
for gold is causing its continuance. 

Elsewhere, will be found a summary of the 
several money conspiracies against the people suc- 


cessfully carried out by the money clique since the 
Civil War of 1862. People must bear in mind that 
these international money dealers do not profit ex- 
travagantly from commercial conditions in time of 
peace. At such times, money is easy and does not 
sell at a premium. In times of commercial. dis- 
turbance—particularly in war—money becomes 
dear and usurious interest can be exacted from 
every branch of industry. The longer the war con- 
tinues, therefore, the more the international money 
controllers gain. An intelligent, aggressive public 
opinion is the only power that can thwart the de- 
signs of these money dealers. 

Can such a public opinion be aroused in the 
United States? . It is to present these matters for 
the consideration of the public that this book is 
written. If people reason correctly, they will act 
right. 

The crushing of Germany—if that were possible 
—would only mean a war between England and 
Russia and France. Remember that France hopes 
to regain Alsace and Lorraine and Russia covets 
Constantinople and Baltic Prussia to get control of 
the sea. England could not consent to placing such 
power in Russia’s hands and neither could she profit 
by the advancement of France. The triumph of the 
Allies means the continuation of the world war 
The triumph of Germany means the speedy estab: 
lishment of world peace. 

This is not a pro-German propaganda. It is an 
appeal to public reason and asks as did Thomas 
Jefferson a century ago: 

“Whether a government conducting itself in the 
true spirit of its constitution with zeal and purity, 
and doing no act which it would be unwilling the 
whole world should witness, can be written down 
by falsehood and defamation ?” 

Ricuarp M. McCann. 


America and the War 


Defeat of Germany Would 
- Hurt Democracy 


By RICHARD M. McCANN 


Editor “Waterways and Commerce” 


Life is complex ; no human formula applies to all 
its phases. Evolution, the motive power of events, 
evades formulation. 

Says Aeschylus: “It is an old saw that great 
prosperity does not die childless, but brings insati- 
able woe on a race. Wealth is no protection to a 
man when he has spurned the altar of right. A 
wretched impulse drives him on, the irresistible, far- 
scheming child of folly.” 

These thoughts of the valiant soldier and inspired 
poet who died 450 B. C. seem particularly pertinent 
to a consideration of the causes that have involved 
the great nations of Europe in war. We citizens 
of the United States who represent in the persons 
of our electorate natives or children of natives of 
each warring nation: should make an impartial 
study of the combatants. 

Russia, France and England are so vast in 
wealth and population that they appear to encom- 
pass all there is of power on the Globe. 

Germany is not as large in area as the State of 


5 


Texas! Texas has 265,780 square miles, Germany 
208,830 square miles. But there the comparison 
ends. . 

And this little section of the world has been so 
intensely worked that it rivals England in the for- 
eign trade of the world. 

More than 80 per cent. of the German railroads 
are owned by the Imperial or State government. 
There are more than 2,000 miles of electric rail- 
roads, 6,000 miles of navigable rivers, 1,500 miles 
of canalized rivers and 1,500 miles of canals. The 
Kaiser Wilhelm or Kiel Canal, connects the North 
Sea with the Baltic and is 61 miles long, with an 
average depth to permit the passage of the largest 
ship. Its cost, upward of $70,000,000, has been 
more than repaid by the protection it has afforded 
the German navy. 

These waterways of Germany are equipped with 
the most improved mechanical devices for handling 
cargoes from big or little ships and are a means 
of revenue to the people. The waterways of the 
United States cost the people $100,000,000 annually 
in taxes and are of negligible benefit to commerce, 
while the waterways of England are useless. 

The railways of Germany pay a profit of $5,000 
a mile—what of the railways of the United States? 

The expenses of the empire of Germany are paid 
by the profits from the postal service, the tele- 
graphs, telephones and state railroads. 

What revenue does the United States receive 
from these sources? 

So much for the material side of Germany. Let 
us glance at the mental or educational side. 

School instruction is obligatory on the whole peo- 
ple, and the government is liberal to extravagance 
in the promotion of primary and secondary edu- 
cation. There are 25 universities with 70,000 stu- 
dents. The leading universities are in Berlin, 


6 


Munich, Bonn, Leipsic, Halle, Heidelberg and 
Breslau. There are also technical and polytechnic 
schools, the Naval Academy at Kiel, Military Acad- 
emies at Munich and Berlin, besides 60 schools of 
navigation, 15 special military schools and 10 cadet 
institutions. 

And all of this in a territory less in area than 
the State of Texas. Think of it! There is a rea- 
son—and that reason is: 

The revenues of the German Empire have been 
honestly expended. 

The government of Germany is that of a consti- 
tutional monarchy, the present empire dating from 
1871. The supreme direction in military and politi- 
cal affairs is vested in the King of Prussia, who in 
this capacity bears the title ““German Emperor,” 
The Kaiser! 

He represents the nation internationally, and can 
declare war, if defensive, and make peace, as well 
as enter into treaties with other nations, and appoint 
and receive ambassadors. 

Remember, the Kaiser cannot declare offens’7’ 
war. A war of offense can only be declared by the 
legislative authority which is vested in the Bundes- 
rath, representing the individual German states, and 
appointed by the governments of each state for the 
session, and the Reichstag, representing the nation 
at large, and elected by universal suffrage, for a 
term of five years. 

Surely this should satisfy the most skeptical that 
the German people realize that the present war is 
a defense of their liberties, of their commerce, yea, 
of their hearthstones. 

Compare the orchard and farm lands of Germany 
with those of England. 

A large part of the surface of England consists 
of wide valleys and plains. It is well supplied with 
rivers. Most of them carry their waters to the 


7 


North Sea. If we consider the drainage as a 
whole, four principal river basins may be distin- 
guished, those of the Thames, Wash and Humber 
belonging to the German ocean and the Severn be- 
longing to the Atlantic. 

Notwithstanding these advantages, England pro- 
duces nothing of value to the nation in the form 
of crops. Her waterways have been practically 
abandoned and her national energies devoted to 
foreign trade aggradizement rather than domestic 
development. Notwithstanding Magna Charta, 
Cromwell and Home Rule for Ireland, men of 
wealth have always ruled England. The acquisi- 
tion of money—financial success has been the goal 
of the nation since the days of the Armada. ‘The 
comfort and prosperity of the people have never 
been the concern of her legislators. 

It is evident that a race entirely occupied in legis- 
lation enacted to seize the property or possessions 
of other people and profit by their production, 
rather than devote their energies to home devel- 
opment, has but a rudimentary humanity, a narrow 
ethics, a narrow religion. 

During the recent discussion in the United States 
Senate on the Rivers and Harbors Bill, the Hon. 
F. M. Simmons, of North Carolina, said: 

“Germany, probably, of all countries of the 
world has developed its water transportation 
to the highest state of perfection. Her rivers 
are not deep, but their channels are in good 
condition. Her terminal facilities and physical 
railroad connections at stopping points are of 
the best. If you will go to that country and 
visit the Rhine you will see that stream full of 
barges, from ten to twelve hundred ton capac- 
ity each, six, eight, and even more of them 
linked together and drawn up and down the 
river with one powerful tug, with perfect ar- 


8 


rangements for loading and unloading, and 
with economic physical connection with the 
railroads which receive their cargoes and dis- 
tribute them into the interior. 

“Our failure to take thought of thesc things 
and to provide for them accounts in part for 
the backwardness of water transportation in 
this country. 

“What has Germany accomplished as a re- 
sult of building her waterways and linking 
them together, and thus securing the cheapest 
possible freight rates for her manufacturers? 
Germany, starting from a position of inferior- 
ity, with a comparatively small foreign trade 
in the markets of the non-manufacturing 
countries, largely pre-empted and monopolized 
by other nations, has gone forward with such 
strides, with such rapid, unparalleled strides, in 
the struggle for trade that in less than 50 years 
she has become probably the most dangerous 
competitor for world’s trade among the indus- 
trial nations of the world. She has successfully 
met the competition of England, for years rec- 
ognized as the mistress of the sea and the mon- 
arch of world commerce. She has successfully 
met the competition of France, Belgium, and of 
our own country. Against all opposition she 
has acquired a foothold here and there and 
everywhere and expanded and grown until she 
has forced herself to the front ranks of the 
great industrial nations who in modern times 
have waged war in all the ports of the world 
for industrial supremacy. 

“For years when we were considering tariff 
legislation the competition of England was 
constantly dinged into our ears. We were told 
that we could not compete in our own markets 
with English products in the absence of high 


9 


protective duties. England was the country 
held up to us as the country of greatest ef- 
ficiency in production, the country where 
things could be made cheaper than anywhere 
else, and the country whose competition we had 
most to fear, both at home and abroad. In re- 
cent years when we have been making tariff 
bills we have heard less of England and more 
of Germany. Germany, we are now told, is 
the country of greatest efficiency in production ; 
the country of cheapest production; the coun- 
try whose competition was most to be feared, 
both at home and abroad. 

“Why has Germany in these few years taken 
the place of England as the nation of cheaper 
production? I answer, Mr. President, because 
she has recognized, as the other nations have 
not, the importance of cheap transportation, the 
effect of cheap transportation upon the cost of 
production; recognized the frightful economic 
waste in using rail transportation where water 
transportation was equally as available in the 
assembling and distribution of heavy and bulky 
products of commerce, and by reducing the 
cost of transportation to a minimum has been 
enabled to produce and distribute her products 
at a lesser cost than her competitors, especially 
her European competitors. 

“Mr. President. the English are a very con- 
servative race of people. They are slow ¢- 
adopt innovations and to change their old meth- 
ods and ways of doing things, but the Enolich 
people could not shut their eves to the effect 
upon Great Britain’s trade of what was hap- 
pening in Germany.” 

Senator Simmons truly said Great Britain did not 
shut her eves to what was happening in Germany. 
Realizing that she could not compete with Germany 


10 


she determined to destroy Germany as she destroyed 
American shipping by sending forth the “Alabama” 
and “Shenandoah” on their voyages of destruction. 
England’s destruction of American over-sea com- 
merce was lucidly set forth in an article by the Hor 
E. Platt Stratton in “Waterways and Commerce” 
in February, 1911. Three years ago Mr. Stratton 
wrote: 

“This abuse and prostitution of American 
interests began about the years 1869 or 1870. 
when English capitalists were appealed to to 
assist with their foreign capital in floating some 
of the heavy bonded indebtedness on two of the 
trunk lines of our intercolonial and interstate 
railroads. The stipulation then entered into was 
that English steamships, owned by English com- 
panies, should be allowed to carry the over-sea 
freight of Northern trunk line railroads from 
the West in lieu or in consideration of the Eng- 
lish financial aid extended in refunding of 
bonded indebtedness, then running at 7 to 8 
per cent. interest. This agreement was largely 
instrumental in the creation and establishment 
of the White Star Line of steamships across 
the North Atlantic, but tended to arouse con- 
siderable sentiment and interest looking to the 
revival of American commerce in the European 
trade which had been lost during the civil war 
by the incursions of the Alabama and Shenan- 
doah. The movement took shape in the forma- 
tion of the American Steamship Company of 
Philadelphia, which built four American steam- 
ships. This particular company received its 
chief patronage and trade from interests identi- 
fied with the leading interstate trunk lines of rail- 
road entering Philadelphia, the Pennsylvania 
Railroad, not then having control of a through 
line connection to tidewater at the port and 


11 


harbor of New York. The establishment and 
operation of this line of American steamships 
soon had the effect of convincing the capitalists 
connected with Pennsylvania’s trunk line system 
that more money and greater profits could be 
made by owning and operating foreign built 
steamships, manned and operated by foreign 
crews under a foreign flag. The American con- 
necting interstate commerce railroad system 
supplied the freight under pro-rating systems 
that could be manipulated to suit any change of 
conditions that might be considered desirable, 
always insuring a profit on either side of steam- 
ship or railroad company, as conditions re- 
quired. The culmination of this now well or- 
ganized and generally deplorable system was 
the organization, construction and subsequent 
development of the Red Star Line of steam- 
ships, organized and operated under the Belgian 
flag. The satisfactory financial results attained 
by this Antwerp line induced the same Ameri- 
can trunk line railroad system and its capital- 
ists to become large owners and later controllers 
of the Inman Line of English trans-Atlantic 
steamers, which, like the Antwerp line, also 
prospered under like influences, but in the trade 
to Liverpool. 

“This now well developed system of owning 
and operating foreign steamship lines by com- 
panies owned by American capitalists, or Am- 
erican holding companies, identified or in con- 
nection with American interstate commerce rail- 
roads, has reached a condition through pro- 
rating and traffic agreements which renders it 
practically and commercially impossible for any 
American interest to enter or. engage in the 
business with American-built, American owned 
or manned vessels. The Europeanizing of Am- 


12 


erican capital in such foreign companies and 
the prostituting of every American commercial 
interest are made operative by a system of in- 
triguing methods of gain that cannot be law- 
_ fully carried on under American laws. And to 
make these conditions the more aggravated our 
European rivals in trade obtain exorbitant pro- 
fits by these methods in combination with men 
of American birth and identified with the na- 
tion’s transportation system, who are constantly 
receiving large profits from the national Gov- 
ernment under its franchises. 


“This is forcibly illustrated in the case of the 
International Mercantile Marine Company, 
made up of the White Star Line, an English 
Company ; the Red Star Line of Belgian steam- 
ers; the Atlantic Transport Line of English 
boats; the Dominion Line, a company within 
the White Star Company, and the American 
Line, of four steamers, two of British and two 
of American build, but subsidized by the United 
States Government to the extent of about $600,- 
000 annually, while operated absolutely within 
the dominating influence of a combination 
which is essentially foreign in every respect, in 
order to evade the penalties incident to a viola- 
tion of the Interstate Commerce Law.” 


~The United States has submitted to spoliation by 
Great Britain because as Mr. Stratton truly says 
because men of “American birth and identified with 
the nation’s transportation system” unlawfully com- 
bine with British capitalists to exploit the people. 
Great Britain has been unable to make such a com- 
bination with men of German birth identified with 
that nation’s transportation system and hence the 
war—just as England attempted in 1812 to crush 
the United States is she now attempting to crush 


13 


Germany, but just as she failed in 1812, so surely 
will she fail in 1914. 

Unhappily the press of the United States is 
dominated by English influence and the papers that 
dealt fairly with Germany two months ago now 
reek with abuse of that great nation. This is the 
more unaccountable because Great Britain has for 
years systematically persisted in a publicity cam- 
paign of everything American, particularly in South 
America. 

On January 7, 1913, testifying before the Com- 
mittee on the Merchant Marine and Fisheries, of 
the House of Representatives, Mr. Sidney Story, 
of the Pan American Steamship Company, de- 
clared: ; 
“We find that our commercial rivals, the Eng- 
lish, are very aggressive in carrying on a propa- 
ganda throughout the press. There is not a 
day but what you take up the newspapers of 
those countries and you will find a whole col- 
umn devoted to Switzerland or Holland, or Bel- 
gium, two columns to France, Italy, and Eng- 
land, and to the United States possibly two or 
three small lines. Or if it is a paragraph or two 
it refers to some objectionable items like divorce 
cases in Nevada or lynchings—items of that 
character. 

“The cable service is in the hands of the 
English, and the news service is in the hands 
of the English, and all the news from North 
America to South America is first censored in 
England before it reaches South America, and 
vice versa, the object being to keep the two 
sections of the western hemisphere as much 
apart as possible. We are pictured to the 
South Americans as northern barbarians, to 
keep them away from us, and South Americans 
are pictured here to us as a lot of revolution- 


14 


ists, so as to keep our people from investing 
in that country.” 

Testimony of Joseph J. Slechta, agent of the 
Brazilian $.S. Co. at New York. 

“My company is owned and operated entirely 
by the Federal Government of Brazil. 

“TI think it is a matter of record that Sir 
Phillips, who is the moving factor in the owner- 
ship of the Royal Mail—that he and his friends 
have bought over a large share of the stock at 
least in the Lamport & Holt and some of the 
large English companies. In fact, it is generally 
understood, at least, in shipping circles, that it 
is a movement leading to a very serious fight 
between German and British shipping  in- 

- terests.” 

And the present war is the outcome of the ‘“‘seri- 
ous fight between German and British shipping in- 
terests” referred to by Mr. Slechta, the Brazilian 
agent. And what does Great Britain do to protect 
Brazil in this emergency? 

The Hon. Maddin Summers, United States Con- 
sul at Santos, Brazil, under date of August 14 last, 
writes to the Department of Commerce and Labor: 

“The situation in Santos, Brazil, is serious, al- 
though probably less so than in other parts of the 
country. The life of the State of Sao Paulo is the 
coffee crop, and any situation which prevents the 
exportation of this product completely paralyzes all 
business. 

“On August 3, in view of the complications 
among the European powers, the Federal Govern- 
ment issued a decree suspending all business until 
August 17. It was evident that the loan of 20,000,- 
000 pounds sterling which was being negotiated in 
Europe could not be obtained, and the Government 
could, with difficulty, meet its obligations. This 
condition of affairs affected especially the State of 


15 


Sao Paulo, as the coffee crop has been harvested 
and the heavy shipping season just begun. 

“As a result of the above decree all the banks 
closed their doors, and business has practically been 
suspended. Shippers are not able to obtain money 
to buy the coffee for export. Many of them were 
caught with only a few milreis in their offices, 
scarcely sufficient for current expenses. 

“The coffee crop of the State is almost entirely 
shipped through Santos. All exportations are finan- 
ced through London, the banks here buying the bill 
of lading drafts in pounds sterling. This applies 
also to the enormous shipments to the United States. 
Thus the merchants, not being able to negotiate 
their drafts, must cease business. 

“The situation has been further demoralized by 
the oscillation of exchange. During July, before the 
Austro-Servian situation became critical, the milreis 
was quoted at 16 pence (32.44 cents). Exchange 
rapidly fell, and on August 3, when the banks were 
closed, the nominal value of the milreis was 12 
pence (24.33 cents). Since then there have been 
no quotations. Pounds sterling (gold) have been 
sold anywhere from 20 to 25 milreis, and United 
States notes and gold from 4 to 5 milreis per dollar. 

“The situation has become still more critical in 
view of the issuance, or proposed issuance, by the 
Government of paper incontrovertible money. No 
one knows what the value of the paper milreis will 
be when the banks open. Many of the large con- 
cerns have heavy deposits in the different financial 
institutions, and have been forced to see their money 
depreciate in value without being able to remedy 
conditions. 

“Another of the immediate effects of the declara- 
tion of war in Europe was the stopping of all ship- 
ping, the vessels of the several belligerents being 
unable to clear on account of fear of capture at 


16 


sea, so that coffee shippers who had their product 
already bought and paid for could not dispose of 
their holdings. Several ships are lying in the ‘har- 
bor, loaded, but unable to leave. In the meantime 
the Brazilian Government has dispatched to Santos 
several of the steamers of the Lloyd Brazileiro Line 
to facilitate both freight and passenger traffic to the 
United States. The freight rates on coffee to 
American ports have advanced from 40 cents a sack 
as charged by the shipping combination and 30 
cents a sack by chartered boats to $1. a sack.” 

England leaves Brazil in destitution because she 
permits no considerations for humanity to distract 
her from her intent to monopolize the trade of the 
world. 

England demands that the war go on because she 
wants to saddle on France such a debt that will 
prevent France from ever again being a lending 
nation. England will take over the securities of 
France at a discount of 40 per cent. and make that 
nation for all time a borrowing nation. 

England demands that the war go on hoping that 
Russia will be able to crush Germany and remove 
the only nation that prevents her from monopolizing 
the trade of the world. 

France aiding and abetting England is souulne 
national suicide. 

The overthrow of Germany would mean the ruin 
of the United States. 

In September, 1913, Waterways and Commerce 
called attention to the growth of Canada and its 
menace to the national life of the United States, 
unless the United States began at once the building 
of a merchant marine. Recently a merchant marine 
measure was adopted by Congress but that measure 
was dictated by British Interests. 

Surely the United States cannot. hope for aid 
from Great Britain in its competition with Canada! 


17 


/ 


As a nation the United States of late has been 
servile to British interests. 

It imposes a tax of $100,000,000 on the people 
although there is a balance in the banks of $75,000,- 
000 in favor of the government. 

New York City is paying the bankers $100,000,- 
000 for obligations abroad that will not mature for 
months. 


The Banks of the United States show a deficit 
of upward of $70,000,000, notwithstanding the fact 
that they have the custody of $75,000,000 of gov- 
ernment money—The People’s Money. 


These sums total $345,000,000. Exactly the 
amount that England added to her war fund when 
she declared war against Germany. 


Can it be that the United States is furnishing 
England money to conduct this war? 
The industries of the United States are prostrate. 
Factories are either shut down entirely or working 

on half time. Why? 


Is it because the banks are interested—as lenders 
—in English factories and do not desire to lose that 
investment by reason of the American factories 
taking away the trade of the foreign mills? 

In 1907 American exports to Germany amounted 
to $256,596,000; in 1912 they reached $306,959,000, 
a gain of substantially $50,000,000. 

Should the people of the United States permit 
the few American capitalists who grow richer by 
reason of their nefarious partnership with English 
finances, to alienate the friendship of a country as 
great as Germany—Germany’s only crime is that 
under the benificent rule of the present Kaiser she 
has followed the principles laid down by the im- 
mortal Washington and has declined to enter into 
“foreign entanglements.” 

The German Government under the Kaiser has 


18 


been most humane and considerate. Here is one 
instance: 


When the great tide of emigrants from Russia 
began to pass through Germany to America, some 
years ago, the German Government was compelled 
to refuse ship passage to many emigres, who were 
ill, deformed or otherwise undesirable. These un- 
fortunates had made a long and expensive railway 
journey and when rejected at the port as unde- 
sirable they had to return by the same route. In 
order to prevent this suffering the German govern- 
ment designated a number of towns on the Russian 
frontier through which Russian emigrants were per- 
mitted to pass. The German railway lines con- 
structed and maintained buildings there for that 
purpose, and appointed an agent at each place, and 
these places were called control stations. These 
control stations were established to inspect emi- 
grants there instead of at the port of embarkation, 
and thus save undesirable ones the tediousness and 
expense of a long journey to the port and then back 
to their homes. 

England and Russia cared nothing for the suf- 
ferings of the poor emigre. All they cared for was 
the transportation money. But the great Kaiser has 
a heart that beats responsive to that of the poor 
suffering Russian Jew and put his government to 
work to ameliorate his condition. The establish- 
ment of stations in Russia for the benefit of the sick 
and needy was denounced by England and Russia 
and Belgium as an interference with another nation. 
Truly it seems that abuse is the reward for the lover 
of mankind from the Christ to the Kaiser. 

“We look upon this world as one great family— 
born of the same flesh and blood, and eventually to 
be governed by the same laws; and the sooner the 
nations of the earth can feel and act upon this prin- 
ciple, the happier it will be for them. What good 


19 


would not the money now do, which is annually 
wasted in the support of military forces, employed 
for the savage purpose of cutting each other’s 
throats, could it be expended in the support of 
schools, carrying out systems of internal improve- 
ments, and promoting the cause of science! And 
what are high tariffs but fortifications and bands 
of custom-house officers but armies created to plun- 
der and make war between nation and nation?” 
said Daniel Webster. 


“The fact that the controlling forces of society 
are usually invisible does not subtract from their 
economic basis. - And as long as we can be kept in 
ignorance of their nature, as long as the minds of 
men can be directed to political and religious ques- 
tions and away from the fundamental economic 
fact, just so long will progress continue to be blind 
and doubtful; just so long will the human pilgrim- 
age renew its circles of disappointment and dis- 
aster. Until we understand and answer the ques- 
tion of bread, until we deliberately equalize pro- 
duction and distribution, until fraternity and free- 
dom are changed from phrase to fact, the world 
will continue to be a wilderness of wanton human 
waste,” writes George D. Herron. 


The equalization of production and distribution 
and the carrying out of a system of internal im- 
provements, have been the accomplishment of the 
Kaiser. Of all the rulers in history he alone has 
made it his particular case to see that the money 
derived by the government was devoted exclusively 
to government use. Under his rule there has been 
no graft in Germany. Even the banks have been 
compelled to play fair with every form of industry, 
and although Germany, not as large an area as the 
State of Texas, has maintained the greatest of 
armies, an efficient navy and a wonderful merchant 


20 


marine, the people of Germany are the most pros- 
perous on earth. 

The government of Germany is in truth a gov- 
ernment for the people. 

The government of England is the bulwark be- 
hind which hides the money manipulators of the 
world. Their thought is that money is all power- 
ful. This thought was expressed by David Lloyd- 
George, Chancellor of the Exchequer, replying on 
Sept. 8 to a deputation from municipalities wanting 
aid. The Chancellor of the Exchequer refused the 
aid saying: 

“We want every penny we can raise to help fight 
the enemy. We must come out triumphant in this 
struggle, and as finance is going to play a very im- 
portant part. in it we must husband our resources. 
We do not want a penny spent which is not abso- 
lutely essential to relieve distress. In my judgment 
the last few hundred millions may win this war. 

“The first hundred millions our enemy can stand 
as well as we can, but the last they cannot, thank 
God, and therefore I think cash is going to count 
much more than we imagine.” 

The materialistic Mr. George will probably learn 
that a powerful personality gifted with spiritual 
vision is more potent than money; that the great 
movements—the epoch marking moments of man- 
kind, are led by a man, not by money. Mahomet, 
Alexander the Great, Julius Cesar, Charlemagne, 
each fashioned the world, or a very large portion of 
it, for long successive ages. One stands in awe of 
the world-shaping influence which some single men 
have exercised. It is a solemn, and it would be a 
terrible thing to contemplate, if we did not believe 
that a Mightier than man rules over all; that those 
mightiest, not less than the smallest, are in his 
hands. Helpers or hinderers of his kingdom are 
alike raised up by him to work out his plans, and to 


21 


bring about in the end by strange and diverse ways, 
that kingdom which shall finally rule over all. 

To the student of the growth and development of 
Germany, there comes with the force of conviction, 
the thought that William II. of Germany has been 
specially called, to revive in man a belief in God 
and a trust in His power and mercy. Indeed God 
always has been the uppermost thought in the mind 
of the Kaiser. 

From boyhood he cultivated the spiritual side of 
his nature assiduously, so that in the 55 years of his 
life he has always been conscious of the presence of 
the ever living God. In truth it may be said of 
him that he walks with God. To no other ruler 
over men, has God been such an actual entity, a 
loving and loved Father. 

Born physically frail, by sheer exercise of will he 
overcame bodily defects to such an extent that in 
early manhood, despite a partial paralysis of his 
left side, he became recognized as an expert swords- 
man, a skilful horseman and a strong pedestrian. 

William II. of Germany has stamped the imprint 
of his personality upon his people. He has intelli- 
gence supported by a courageous will, he has the 
gift of knowing what is to be feared and what not 
and in acting accordingly. Like the Kaiser the 
German people have grown from a nation of little 
promise to a people of supreme power. 

Germany has given to the world two great object 
lessons. 

The first is the folly of a people neglecting to be 
ready for war. For centuries Germany placed more 
importance on culture than on cannon. Did it earn 
the respect of England by that course? 

An English writer treating of the German nation 
in 1815, said: 

“Their conduct during the great war had shown 
so slender an aptitude for self defense that the idea 


22 


of their attempting conquest was too absurd to be 
entertained. Nor had their patriotism been of that 
excitable kind which disposes a nation to incur risk 
for the sake of glory. They had allowed themselves 
to be tossed from one ruler to another as the fancy 
of their conquerer might decide; they had submitted 
to seeing a horde of foreign officials stifling their 
trade in order to forward their designs, and loading 
them with taxes to keep up the machinery for their 
oppression.” 

To stifle trade and extort taxes ever has been and 
always will be the reason for war. The second 
object-lesson that Germany has given to the world 
is that an honest administration of the affairs of a 
people will make them prosperous notwithstanding 
an extraordinary expenditure for National defense. 

These lessons should be iearned by the people of 
the United States. They were taught by the found- 
ers of the Republic, but they have been dropped 
from the National curriculum for more than half 
a century. Germany alone of all the nations has 
strictly adhered to the policies of Washington, of 
Jefferson, of Jackson and of Lincoln. 

Said the Hon. Jacob H. Gallinger, United States 
Senator from New Hampshire, in an address before 
the United States Senate: 

“The one Old World nation which has made 
prodigious strides in foreign commerce of re- 
cent years, our ever vigilant and most form- 
idable competitors, is the Empire of Germany, 
a thoroughly protectionist nation like our own. 
Until a quarter of a century ago, German sea 
power was absolutely insignificant. The Em- 
pire had a small war navy and a small and not 
very prosperous or efficient merchant fleet. 

“Not until Germany began to own and build 
her own ships to carry her own trade did she 
begin to be considered as a serious factor in 


as 


the commerce of the world. Her wonderful 
maritime expansion has made her mercantile 
expansion possible. The clear vision of the 
great Kaiser first recognized that his country 
must have ships in order to have commerce, 
and that to have ships meant increased pros- 
perity not only for the seaport towns, but for 
every manufacturing village or agricultural dis- 
trict producing anything that could be sold 
abroad. German merchant tonnage that under 
a ‘free-ship’ policy, without State aid, increased 
only from 1,098,000 in 1873 to 1,270,000 in 
1881, has, with State aid, grown to 3,393,000 
in 1904, and German commerce has expanded 
in almost like proportion.” 

And in all this trade expansion never was an un- 
fair act done by Germany to any other nation. On 
the contrary Germany was chosen as the subject 
for special approbation at the Lake Mohawk Peace 
Conference a little more than a year ago. 


24 





THE Crown PRINCE OF GERMANY 


Peace Conferees Extol Kaiser 


“Fruitful causes of war in the future are likely 
to be international distrusts, dislikes and apprehen- 
sions, nursed in ignorance and fed on rumors, sus- 
picions and conjectures, propagated by an un- 
scrupulous press,’ said Charles W. Eliot, President 
Emeritus of Harvard University, at the Lake Mo- 
oe Conference on International Arbitration, May 
15,1913, 


At that same conference Mr. Ralph Lane, better 
known as “Norman Angell,” author of “The Great 
Illusion,” said: 


“Tf you ask an Englishman why he thinks it 
is necessary to maintain an army, he is inno- 
cent of doubt. He will tell you that he is 
threatened by Germany. And you cannot say 
that he is not. Not that Germany has neces- 
sarily any aggressive intentions as against Eng- 
land, but no one can tell whether Germany has 
or has not. The other day Lord Roberts made 
our flesh creep by telling us that in ten or fif- 
teen years Germany would invade England. He 
knew, of course. Now Lord Roberts is an 
Englishman, knowing the English people, be- 
ing personally acquainted with members of the 
government and opposition. And yet if you 
were to ask him what England intended to do 
six months hence at the next general election 
on some small matter like Home Rule or the 
suffrage question, he could not to save his life 
tell you. But though he cannot tell you what 
his own country will do six months hence, the 
intentions of a much more complex foreign 
country across the North Sea fifteen years 
hence are no secret to him at all.” 

What stronger proof could be desired to show 
that England was then fomenting hatred of Ger- 


26 


many, although her members of Parliament knew 
that Germany desired peace? In proof of this take 
the statement made at the same conference by 
Heinrich York Steiner, of Vienna. Said he: 

“Although Europe has just had a war, hide- 
ous in all its features, and in which the pas- 
sions of the people have been greatly excited, 
yet the advocates of peace are in the minority. 
And you will be astonished where the friends 
of peace are to be sought for, not among the 
common soldiers or common people who bear 
the brunt of the battle, but among the crowned 
heads of Europe, who are aware of the cost of 
war and its dangers even to the victor. Yester- 
day evening the honorable gentleman (J. Allen 
Baker, M. P.) who presided at the session told 
us that the Emperor of Germany was one of 
the great factors for peace. I am fortunately 
in the position to claim the same thing for His 
Majesty, the aged Emperor and King of Aus- 
tria and Hungary.” 

On the same occasion J. Allen Baker, of London, 
a member of the English Parliament, said: 

“Europe is an armed camp. Five million 
men are under arms and twenty-five million 
more ready in case of need—thirty million men, 
supported by the labor and industry of the peo- 
ple, ready to fly at each other’s throats in an 
attempt to settle questions which should only 
be settled by courts of justice or by arbitration 
on lines of truth and righteousness! I believe 
there is an uneasiness on the part of rulers and 
governments. 

“Mr. Ginn this morning referred in a very 
striking way to the duties of the church, and 
other organizations, to take up this work of in- 
ternational brotherhood and peace. I am glad 
to report that the work which has appealed to 


27 


me most strongly and to which I have felt 
called upon to give my best energies, has dur- 
ing the last year or so met with very good 
success. I refer to the work of the Associated 
Councils of the British and German Empires 
for fostering friendly relations between those 
two peoples. It was started in 1908 and has 
been growing steadily ever since. We have 
over ten thousand of the leading ministers and 
religious leaders, and a considerable number of 
laymen in hearty accord and supporting this 
cause.” 


Dr. Lyman Abbott, another speaker at the con- 
ference, said: 


“Combativeness and destructiveness are not 
vicious elements in human nature. They are 
not to be destroyed; they are to be guided by 
reason and directed to beneficent ends. There 
are times when war is necessary. The history 
of the world would be poorer than it is if there 
were no record of war on its pages; if there 
had been no heroes who dared to fight for jus- 
tice and liberty ; no William of Orange to array 
his country against the persecuting sword of 
the Duke of Alva; no Cromwell to stand for 
civil liberty in England; no Washington to lead 
the forces of America against foreign despot- 
ism. Christianity does not emasculate man. 
Christians have not stood and ought not to 
stand for peace at any price. They have rec- 
ognized, and they ought to recognize, that there 
are worse things than war, bad as war is. Con- 
stantine was led to adopt Christianity primarily 
because he found the primitive Christians in 
the fourth century better soldiers man for man 
than the pagan Romans. Never have their been 
braver or better soldiers than the Puritan Iron- 


28 


sides, whose heroism gave liberty to England 
and to America. 

“This truth the Bible abundantly recognizes. 
First pure, then peaceable, is its motto. In 
Paul’s description of the Kingdom of God, 
righteousness, peace and joy, righteousness 
precedes peace. There is no honorable peace 
which is not founded on righteousness. 

“Enduring peace is possible only when it is 
the fruit of justice. The blow of the fist, the 
gleam of the sword and the bark of the cannon 
will continue until some other power than that 
of the armed man is found to protect innocence 
from injustice. ‘War, says Charles Sumner, 
‘is a public armed contest between nations under 
the sanction of international law, to establish 
justice between them.’ 

“There are two ways of promoting peace: 
one by making our Nation so weak that it can- 
not fight; the other by making it so strong that 
it need not fight. Weakness is a terrible pro- 
vocative of war. The War of 1812 would not 
have occurred if Great Britain had believed that 
we had a navy adequate to protect our citizens 
upon the sea.” 

There would be no war in 1914 if Great Britain 
had thought that Germany could command the bil- 
lions of dollars that her loyal people have poured 
into the national treasury since the beginning of 
hostilities. 

But there is a greater power than money behind 
Germany and the German soldier. That power is 
the implicit belief in the Kaiser and the justness 
of their cause.. The personality of the Kaiser will 
bear down the scale of justice against all the money 
that may be piled up on the other side. 

The Kaiser more than any other ruler of ancient 
or modern times has stood for justice, equal jus- 


29 


tice for rich and poor alike. Because of this Ger- 
many has prospered while Great Britain has de- 
clined. In 1882, Germany had 6,396,000 workers 
in mining and other industries; in 1907, 5,000,000 
more (11,156,000)—1i. e., 200,000 more every year. 
In Austria-Hungary in 1890, 3,824,000, and ten 
years later 4,323,000—1i. e., 45,000 more every year. 

But the industrial development of Germany has 
other results apart from this. The surplus of 
workers in the great emigration countries—Russia, 
Austria, Hungary and Italy—generally go to Ger- 
many and work there during the season. But there 
are also fixed colonies of foreign workers, contain- 
ing some hundred thousands already established 
there. On the 12th of June, 1907, 799,863 foreign- 
ers were counted in Germany as employed in the 
industrial, commercial and communication concerns, 
as well as those in service. From Austria alone, 
316,000 season workers go yearly to Germany as 
against only 120,000 to the United States of 
America. 

Human personality grows as men perceive that 
only in correlation with the welfare of others can 
they fulfill themselves. So with nations. The 
Egyptians and Babylonians fifteen centuries before 
Christ had established themselves in Northern 
Mesopotamia; with arms they conquered and with 
arms they held the empire of Western Asia and in 
their day were as powerful as was England a 
month ago. Although they professed a love for 
literature, art and religion, the spiritual element of 
personality was not developed and when their mil- 
itary might was broken they and their cities ceased. 

In the person of the Kaiser the German Army 
has the spiritual element of personality in an aston- 
ishing degree. 

By that they must conquer. 

Constantine had his sign in the heavens under 


30. 


which his armies conquered; Mahomet had his as- 
surance of Paradise, Napoleon had his star of des- 
tiny in which his soldiers believed, but the Kaiser 
has a greater and truer talisman—he has his rev- 
erence for and his belief in God and every man, and 
boy, in his vast armies believes in and with him. 

And as Constantine and Mahomet and Cesar 
conquered so will the Kaiser triumph. 


31 


‘ENGLAND WILL GAIN 
AT AMERICA’S COST 


A recent issue of Die Wiche, a widely circulated 
German periodical, contains an article on “Eng- 
land’s purpose in the current war,” by Dr. Alfred 
Zimmermann, now Assistant German Secretary of 
State, who has for many years been prominent in 
the councils of the German Foreign Office. Dr. 
Zimmermann traces the development of England’s 
anti-German foreign policy, of which he says King 
Edward was the father, while Sir Edward Grey 
and Winston Churchill have in recent years been its 
chief exponents. “It is significant,’ he says, “that 
when a liberal government came into power it took 
over from the Tories the two men most prominently 
identified with the anti-German propaganda. 

“Whoever has followed the activities of these 
two men,” Dr. Zimmermann continues, “could not 
remain in doubt about England’s intention of using 
the first favorable opportunity to smash German 
power. The most widely circulated English news- 
paper, which has long enjoyed the close confidence 
of the British administrative leaders, declared very 
cold bloodedly, days before England entered the 
war, that England would be compelled to enter the 
war upon the side of Russia and France for the 
sake of preserving the ‘balance of power.’ 

“But in this war England is not only concerned 
about grabbing Germany’s colonies, destroying 
Germany’s fleet, wiping out Germany’s trade and 
weakening Germany’s economic life. She is en- 
visaging other advantages, advantages with regard 
to which she is maintaining a discreet silence. 

“For although the Russo-Japanese war weakened 


32 


the Russian giant materially, and thereby assured 
England a greater degree of security in her Asiatic 
possessions, it can now count upon an even more 
violent shaking for the colossus of the North. There 
is little doubt about England’s quiet satisfaction at 
every Russian defeat. For every weakening of 
Russia accrues to England’s advantage in India and 
for her political schemes in East Asia. 


“UNITED STATES WILL SUFFER SEVERELY AS RE- 
SULT OF War.” 

“The far-sighted English politician promises him- 
self even greater advantages than the war offers 
with respect to Russia from its effects upon British 
relations with the United States. This latter coun- 
try, directly and indirectly, is bound to suffer most 
seriously as a result of this war. The United States 
is the third commercial nation of the world. British 
trade totals $7,000,000,000 annually. Germany’s 
totals $5,250,000,000, and that of the United States 
amounts to $4,250,000,000. Nearly half the foreign 
trade of the United States is carried on with 
Europe. Besides, England, Germany, France, Hol- 
land and Belgium are America’s best customers, and 
furnishers, and they serve this function in even 
larger measures than appears from the import and 
export statistics. 

“A good part of the merchandise which England 
imports from America is carried to the European 
mainland. Similarly, England carries much Euro- 
pean merchandise to the United States. Under these 
circumstances it is readily apparent that the United 
States is bound to suffer seriously not only for the 
moment, but in the future as well, particularly if 
England achieves its object of destroying the Ger- 
man and French shipping trade with the United 
States and other over-sea countries. According to 
the most recent statistics, only 10 per cent. of all 


33 


the freight handled in American harbors was car- 
ried in American bottoms. More than two-thirds 
of all the shipping in American ports already carries 
the British flag. Whereas, the total registered ton- 
nage of the ships entering American ports is 24,- 
500,000, the German share of this amounted to only 
4,500,000, the French and Dutch to only 1,000,000 
tons each. 


“If England’s policy of securing a monopoly of 
American shipping is successful, it means a serious 
economic disadvantage, as well as a political danger 
for the United States. The British would be the 
arbiters of over-sea rates, and would be in a posi- 
tion to prescribe to the United States the conditions 
under which it might do business with the outside 
world. Already the cutting off of the United States 
from cable connection with Germany has worked a 
serious disadvantage to the Americans. Competi- 
tion has been eliminated, Great Britain’s influence 
upon the world has been enormously increased. 


ENGLAND CouNTS ON GAINING OTHER ADVANTAGES 
AT AMERICA’S EXPENSE. 


“England, moreover, is counting upon obtaining 
other advantages at America’s expense. For a long 
time they have begrudged Uncle Sam an influence 
in the Far East which they have found inconvenient. 
No less irritating have they found the stand which 
the United States has taken in matters affecting 
Central and South America. England’s indignation 
at America’s attitude in the Panama and Mexican 
question is an open secret. The completion of the 
Panama Canal will only mitigate against England’s 
position on these issues, as well as in the Far East. 
Already diverse matters connected with the Panama 
Canal have raised issues between British and Amer- 
ican diplomacy. There was always the danger that 


34 


these differences might lead to more serious mis- 
understandings. 

“Therefore, England is altogether justified in as- 
suming that in all these matters also a successful 
issue of the war and the consequent readjustment 
of the European situation in England’s favor, will 
‘leave her in a much better position to achieve her 
ends. For then, with its chief European opponent 
out of action, England can turn its full strength 
against the United States without having to fear a 
rear attack. 

“The world was astonished ten years ago, when 
England permitted France—a country with which it 
had warred for centuries, and against which it had 
struck at every possible opportunity—to take over 
Morocco and the key to Gibraltar. There was no 
less astonishment when Christian England, a coun- 
try which has ever sounded the call to arms against 
the unbeliever, entered into an alliance with heathen 
Japan. The far-reaching plans which motivated 
these steps have been understood by very few people 
outside of England. German public opinion paid 
scant attention to the warnings uttered against the 
dangerous plans of Edward VII. Even now the 
world’s opinion as to British intentions is very much 
divided. Yet no one who has carefully observed 
British policy for the past three decades could doubt 
that England is today far less concerned about the 
weal or woe of France, Russia or Servia than about 
her own future position as a world power. The 
United States will play the most important role in 
this connection. Consideration as to her prospec- 
tive position with reference to the United States 
may have had much to do with leading England 
into her present attitude. Let us hope that Ameri- 
cans will be more far-sighted than was the German 
public, and that they will take measures to meet the 
situation.” 


35 


Commercial Relations of the United 
States 


The world’s leading importers are the United 
Kingdom, Germany and the United States, in the 
order named, France being fourth and the Nether- 
lands fifth. The United States and the United 
Kingdom are the world’s largest exporters, fol- 
lowed by Germany, France, and the Netherlands. 
The United States furnishes about 20 per cent. of 
the total imports into the United Kingdom, 15 per 
cent. of those into Germany, 10 per cent. into 
France, 14 per cent. into Italy, 65 per cent. into 
Canada, 53 per cent. into Cuba, 50 per cent. into 
Mexico, 15 per cent. into Argentina, and 15 per 
cent. into Brazil. 


German Street Car Management 


Two CENTS THE AVERAGE FARE, Four CENTS THE 
MAXIMUM IN DRESDEN. 


Twenty-three of the largest German cities are 
showing thrift in the management of their transit 
lines by getting the most good out of their expendi- 
ture for the convenience, comfort and prosperity of 
the public, both in the cities and suburbs. 

In Berlin the street car service is excellent. There 
are more seats than passengers at almost any hour 
of the day.. Not more than seven persons are ever 
permitted to stand. In that city, where the elevated 
line is under private management, the service has 
been brought up to a high standard and compares 
well with the surface lines run by the municipality. — 
In the German capital the right of way of the ele- 
vated roads has been planted with grass and flowers, 
and fitted with benches and other conveniences. 


36 


All through the crowded city the elevated roads 
make lines of green which are free for the use of 
the public. The stations are inclosed from the 
weather and are beautiful in design. The elevated 
is called the “umbrella of Berlin” because it affords 
shelter from rain and sun. Both surface and ele- 
vated lines are so constructed that there is a mini- 
mum of noise. The average fare is 2% cents. 

Dresden is typical of the number of devices for 
convenience of passengers. A stranger can easily 
use the street railways without knowing the Ger- 
man language or the street arrangement. Each of 
the eighteen lines is designated by a number which 
has a conspicuous place on the front of the car. 
The cars with the even-numbered routes are painted 
red and the odd-numbered route cars are painted 
yellow. The cars make their stops in the middle of 
blocks, so that they do not interfere with traffic at 
street corners. Inside the car on one side is a map 
showing the route of the car lines, together with 
their numbers, and on the other side of the car is 
a map showing the various zones into which the city 
is divided. The cars are supplied with clocks which 
are advertisements of their makers. Two cents is 
the average fare for a single ride and 4 cents is the 
maximum faré. 

Through wise, thrifty expenditures these German 
cities have eliminated the strap-hanging which is 
prevalent in the large American cities. The public 
travel in comfort at about half the price Americans 
usually pay. They have placed the transportation 
of the public on the same basis as their health, 
police and fire protection. Their employes are paid 
better wages than. in the past. 

These cities are building for permanence, and in- 
dustry is encouraged by their cheap fares. It is 
demonstrated that with these low rates and generous 
transfers the congested conditions, high rents and 


37 


unsanitary, poor housing in the overcrowded cities 
is already in some degree diminished. Suburbs are 
developed by cheap commutation, and the working 
classes are allured to the surrounding country and 
its valuable land for gardens.—Idaho Statesman. 











38 


Heinrich Heine on the Money 


Monopolists 


I confess that I am not impartial when I speak 
of English people and it is possible that my un- 
favorable opinion, my aversion is deeply rooted in 
my anxieties as to our own property or on the 
happy and peaceful prosperity of the German 
Fatherland. For since I have learned what vile 
egotism prevails in their politics, these English in- 
spire me with unlimited and terrible fear. 

I have the best respect for their material supre- 
macy—they have a great deal of that brutal energy 
wherewith the Romans conquered the world, but 
they unite with the wolfish rapacity of Rome—the 
serpents’ craft and cunning of Carthage. We have 
good and well tested arms for the first, but against 
the murderous, merciless treachery of these Phceni- 
cians of the North Sea we are without defense. 
And England is now more dangerous than ever 
since its mercantile interests are succumbing. 

There is not in all creation such a hard hearted 
creature as a shopkeeper whose trade is diminishing, 
whose customers are falling away and whose stocks 
find no demand. How will England save herself 
from such a business crisis? I do not know how 
the question of the factory workmen can be solved, 
but I do know that the policy of the modern Car- 
thage is not at all difficult as to choice of means. 
To this selfishness a European war may as a last 
resort seem to be the best means of sending the 
malady from within outwards. 

The English Oligarchy will speculate firstly on 
the purse of the middle class, whose wealth is in- 
deed colossal and which may be sufficiently dis- 
tributed to pay and pacify the lower classes. How- 
ever great may have been the expense for Indian 
and Chinese expeditions, however great financial 


39 


distress, the English Government will at once raise 
the money if it aids their plans. The greater the 
home deficit will be, the more profusely will British 
Gold be spent abroad; for England is like a mer- 
chant who finds himself becoming bankrupt, and 
out of despair turns prodigal, or who rather shuns 
no expenditure to keep up a momentary credit. 
And we can do a great deal in this world with 
wealth, especially since everyone seeks his happi- 
ness here below. 

No one has any idea as to what enormous sums 
England annually expends to subsidize its foreign 
agents, whose instructions are all based on the pos- 
sibility of a European war, or how these English 
agents employ the most heterogenous talents, 
virtues and vices in foreign countries to achieve 
their aims. 

Paris, Sept. 17, 1842. 


British Proposals Forced Invasion of 
Belgium, Says Diplomat 


German Charge d’Affaires, Haniel von Haim- 
hausen, maintains that the reports from London 
seek to give the erroneous impression that Germany 
precipitated the war wholly because German troops 
had advanced into Belgium, whereas, he declares, 
the British Foreign Office had previously laid down 
terms to Germany which would have had the effect 
of restraining the German navy from operating 
against Russia in the Baltic—the most natural 
waterway leading to the Russian possessions—or 
from operating against France along the north 
coast of that country, which was the most natural 
and proximate point for the German naval forces to 
operate. 


40 


Thus, before the Belgian issue arose, England, 
Mr. von Haimhausen contends, had sought to com- 
pel Germany to hold its navy inactive at the very 
points where it could be most effective; to reduce 
it to a state of comparative inaction in upholding 
such position as the German nation might determine 
upon. 


Admission by Prof. Charles W. Eliot 


Says Prof. Eliot: 


“There are many important matters concerning 
which American sympathy is strongly with Ger- 
many: (1) The unification of Germany, which 
Bismarck and his co-workers accomplished, natur- 
ally commended itself to Americans, whose own 
country is a-firm federation of many more or less 
different States, containing more or less different 
peoples. While most Americans did not approve 
Bismarck’s methods and means, they cordially ap- 
proved his accomplishment of German unification. 
(2) Americans have felt unqualified admiration 
for the commercial and financial growth of Ger- 
many during the past forty years, believing it to be 
primarily the fruit of well-directed industry and 
enterprise (3) All educated Americans feel 
strong gratitude to the German Nation for its extra- 
ordinary achievements in letters, science and educa- 
tion within the last hundred vears. Jealousy of 
Germany in these matters is absolutely foreign to 
American thoucht, and that any external power or 
influence should undertake to restrict or impair 
German progress in these respects would seem to 
all Americans intolerable. and. indeed, incredible. 
(4) All Americans who have had any experience 
in governmental or educational administration rec- 
ognize the fact that German administration—both 


41 


in peace and in war—is the most efficient in the 
world; and for that efficiency they feel nothing but 
respect and admiration, unless the efficiency requires 
an inexpedient suppression or restriction of indi- 
vidual liberty. (5) Americans sympathize with a 
unanimous popular sentiment in favor of a war 
which the people believe to be essential to the great- 
ness, and even the safety, of their country—a senti- 
ment which prompts to family and property sacri- 
fices very distressing at the moment, and irremedi- 
able in the future; and they believe that the Ger- 
man people today are inspired by just such an over- 
whelming sentiment. 


German Scientists Exchange Signals 
Under Ocean in Important 
Experiments 


The first of a series of observation by German 
scientists to determine whether or not the earth is 
shrinking was begun at Far Rockaway, L. IL, July 
21, when Professor Albrecht von Flatow sent a 
signal by cable from Far Rockaway to Professor 
Max Schnauder in Barkum, which is near Potsdam, 
Germany. The immediate result of the observa- 
tions will be to determine the exact difference in 
time between Washington, D. C., and Potsdam, 
Germany. The difference in time determined by 
observations which will be made ten, twenty-five, 
fifty or more years from now will be compared with 
the results of the present observations. If the 
figures vary, it will indicate that the distance be- 
tween the Old World and the New has changed and 
that the size of the earth has changed. Professor 
von Flatow said that the theory which the observa- 


42 





GERHART HAUPTMANN 


The German Poet, Winner of the Nobel Prize for 
Literature—About $39,000 


tions are aimed to test, is that the earth is con- 
tracting. 

The observation are being made by the German 
Geodetic Survey. Far Rockaway was selected as 
the American station because the Commercial Cable 
Company’s station and the terminals of the German 
cables are here. Professor von Flatow’s signal 
went to Horsa, in the Azores, where it was noted 
by Professor Theodore Albrecht, another German 
Geodetic Survey scientist, and thence to Barkum, 
where Professor Schnauder answered by another 
signal. All three scientists are equipped with chro- 
nometers, the error of which have been very min- 
utely calculated. The time lost in sending the signal 
from Far Rockaway to Barkum, due to induction 
and other causes, has been calculated. The scientists 
can therefore determine the difference in time be- 
tween the two places to the smallest part of the 
second. 


With Malice Toward None 


War is hostility between sovereign nations, that, 
having no superior power to which to appeal for 
the settlement of their disputes, have recourse to 
force and arms. War is either offensive or de- 
fensive. The power that strikes the first blow, 
however, is not always the original author of the 
hostile measures, since the seeming assailant is 
often forced into his position by the violation of his 
rights or the menacing posture of the other parties. 
In the main, the judgments of mankind have pro- 
nounced in favor of a defensive war. 

Germany today is conducting a defensive war. 
A dispassionate review of the record will disclose 
the fact that England demanded of Germany, as 
the price for non-interference, that Germany render 


44 


herself helpless should the quarreling European 
powers invade her territory in waging battle. ‘This 
Germany declined to do and as a consequence is 
the object of abuse by an English inspired Ameri- 
can Press. 


The right thinking patriotic American prays for 
German success because Germany stands for Jus- 
tice, and Justice should prevail though the Heavens 
fall. 

When the historian of tomorrow. pens the nar- 
rative of the war of today, his verdict will be that 
it was caused by the most sordid of motives— 
Money, Gain, Greed. 

Not the faintest tinge of patriotism will be found 
in England’s action. 

England, that egged on Russia and France to 
send the flower of their youth to death while ‘she 
sent brown Hindus and South African blacks as 
substitutes for Britons! 

But let us not blame England. Englishmen are 
not on the firing line because this is not an Eng- 
lishman’s quarrel. It is the fatuous attempt of the 
money monopolists to control the governments of 
England and Russia and France—and aye—of the 
United States, who are quartered in England and 
who object to any nation giving to the people a 
portion of the money of the world which they 
covet. 

So let us acquit Englishmen of this terrible crime 
of war and praise them for playing golf and tennis 
and billiards as they are doing, while the black and 
brown mercenaries are attempting the murder of 
innocent but valiant and unconquerable Germans at 
the behest of the Money Monopolists. 

When Napoleon’ Bonaparte was sent to St. 
Helena one hundred years ago, the money monopo- 
lists took up their headquarters in London. There 
they laid their plans for world control. Europe 


45 


was at their mercy and the only obstacle to their 
success was the United States, which at that time 
had a Merchant Marine and the prospect of an in- 
dependent Financial System. They induced the 
Congress of the United States to trade with foreign 
nations via London and to destroy the American 
Merchant Marine. 

Noble Americans, who planned this year to cele- 
brate in London One Hundred Years of Peace at 
such a price! 

The hundred years of peace was a peace only 
between the money monopolists of England and 
the United States. Wars were everywhere over 
the globe and their termination meant only a few 
more millionaires in London and New York. For 
seventy odd years the money monopolists were so 
successful that they felt their reign of loot and 
slaughter would never end. ‘They laughed aloud 
when Lincoln proclaimed that a slavery worse than 
black slavery was menacing mankind—Money 
Slavery, Lincoln called it—but the people did not 
understand. 

Do they understand it now, when hundreds of 
thousands of strong men in our great cities have 
been for years without employment? 

They do not understand. If they understood a 
war against Germany would be impossible. 

The money slave masters of which Lincoln 
warned are in control and are lashing mankind into 
degradation and death. But there has come for 
our liberation another Lincoln and he is William 
II. of Germany— 


The Kaiser! 


A French Scholar’s Opinion of Germany 


(From Taine’s History of English Literature.) 

“It is from Germany that Carlyle has drawn his 
greatest ideas. He studied there, he knows per- 
fectly its literature and language, he sets this litera- 
ture in the highest rank, he translated Wilhelm 
Meister, he wrote upon the German writers a long 
series of critical articles, he has just written a life 
of Frederick the Great. He is the best accredited 
and most original of the interpreters who have in- 
troduced the German mind into England. This is 
no small thing to do, for it is in such a work that 
every thinking person is now laboring. 

“From 1780 to 1830, Germany has produced all 
the ideas of our historic age; and for half a century 
still, perhaps for a whole century, our great work 
will be to think them out again. The thoughts which 
have been born and have blossomed in a country, 
never fail to propagate themselves in neighboring 
countries, and to be engrafted there for a season. 
That which is happening to us has happened twenty 
times already in the world; the growth of the mind 
has always been the same, and we may, with some 
assurance, foresee for the future what we observe in 
the past. At certain times appears an original form 
of mind, which produces a philosophy, a literature, 
an art, a science, and which, having renewed the 
form of man’s thought, slowly and infallibly renews 
all his thoughts. All the minds which seek and 
find are in the current; they only advance through 
it; if they oppose it, they are checked; if they devi- 
ate, they are slackened; if they assist it, they are 
carried beyond the rest. 

“Thus at the end-of the last century arose the 
philosophic German genius, which, having engen- 
dered a new metaphysics, theology, poetry, l'tera- 
ture, linguistic science, an exegesis, erudition, de- 


47 


scends now into the sciences, and continues its evo- 
lution. No more original spirit, more universal, 
more fertile in consequences of every scope and 
species, more capable of transforming and reform- 
ing every thing, has appeared for three hundred 
years. It is of the same order as that of the Renais- 
sance and of the classical Age. It, like them, con- 
nects itself with the great works of contemporary 
intelligence, appears in all civilized lands, is pro- 
pagated with the same inward qualities, but under 
different forms. It, like them, connects itself with 
the great works of contemporary intelligence, ap- 
pears in all civilized lands, is propagated with the 
same inward qualities, but under different forms. It, 
like them, is one of the epochs of the world’s his- 
tory. It is encountered in the same civilization and 
in the same races. We may then conjecture, with- 
out too much rashness, that it will have a like dura- 
tion and destiny.” 


An English Scholar’s Opinion of Germany 


(Thomas Carlyle in the London Times, November 
18, 1870.) 


“The Question for Germans, in this crisis, is not 
one of magnanimity, of heroic pity and forgiveness 
to a fallen foe, but of solid prudence and practical 
consideration what the fallen foe will, in all likeli- 
hood do when once on his feet again. Written on 
the memory in a distinctly instructive manner, Ger- 
many has an experience of four hundred years on 
this point; of which on the English memory, if it 
ever was recorded there, there is now little or no 
trace visible. No nation ever had so bad a neighbor 
as Germany has had in France for the last four hun- 
dred years; bad in all manner of ways; insolent, 


48 


rapacious, insatiable, unappeacable, continually ag- 
gressive. Germany, I do clearly believe, would be 
a foolish nation not to think of raising up some 
secure boundary fence between herself and such a 
neighbor, now that she has the chance. 

There is no law of nature that I know of, no 
Heaven’s act of Parliament whereby France, alone 
of terrestial beings, should not restore any portion 
of her plundered goods when the owners they were 
wrenched from have an opportunity upon them. 

The French complain dreadfully of threatened 
loss of honour; and lamentable bystanders plead 
earnestly ‘Don’t dishonour France, leave poor 
France’s honour bright.’ But will it save the 
Honour of France to refuse paying for the Glass 
she has voluntarily broken in her neighbor’s win- 
dows? ‘The attack upon the windows was her dis- 
honor. Signally disgraceful was her assault on 
Germany ; equally signal has been the ignomy of its 
execution on the part of France. The honor of 
France can be saved only by the deep repentance of 
France and by the serious determination never to do 
so again. For the present, I must say, France looks 
more and more delirious, miserable, blamable, piti- 
able and even contemptible. She refuses to see the 
facts, that are lying palpably before her face and the 
penalties she has brought upon herself. 

A France scattered into anarchic ruin, without 
recognisable head, or chief, indistinguishable from 
feet or rabble. Ministers flying in balloons ballasted 
with nothing but outrageous public lies; proclama- 
tions of victories that were creatures of the fancy; 
a Government subsisting altogether on mendacity, 
willing that bloodshed should continue and increase 
rather than that they, beautiful Republican Crea- 
tures should cease to have the guidance of it. I 
know not when and where there was ever such a 
nation so covering itself with dishonour. The quan- 


49 


tity of conscious mendacity that France, official or 
other, has perpetrated latterly, especially since July 
last, is something wonderful and fearful. And, 
Alas! perhaps even that is small compared to the 
self-delusion and unconscious mendacity long pre- 
valent among the French. 

“To me, at times the mournfullest symptom in 
France is the figure its ‘men of genius,’ its highest 
literary speakers, who should be prophets and seers 
to it make at present and indeed, for generations 
have been making. It is evidently their belief that 
new Celestial wisdom is radiating out of France 
upon all the other evershadowed nations, that 
France is the Mount Zion of the Universe, and that 
all this sad, sordid and semi-delirious, and in a good 
part infernal stuff which French literature has been 
preaching to us for the last fifty years is a veritable 
new Gospel out of Heaven, pregnant with the bless- 
edness for all the sons of men. 

“Bismarck, in fact seems to me striving with 
strong faculty, by patient, grand and successful 
steps towards an object beneficial to Germans and 
to all other men. That noble patient deep and solid 
Germany should be at length welded into a nation 
and become Queen of the Continent instead of vain- 
glorious quarrelsome and oversensitive France, 
seems to me the hopefulest public fact that has oc- 
curred in any time.” 


Russian Autocracy and Its Bloodbath 


Tuomas C. Hatt, D.D. 


Blinded by fear of German invasion and jealous 
of the growing sea power on the North, England 
has herself lost sight of the real issue of the war, 
and a docile American public has out-Englanded 
England. The existence of a Russian autocracy 


50 


was at stake, and Europe has been plunged into war 
to save that wretched autocracy. Were by any 
chance the Allies to win, England would within a 
short time have conscription and be seeking an alli- 
ance with Germany on almost any terms to save her 
Eastern interests from Russia. For this autocracy 
is a plundering Asiatic anachronism in Europe. It 
can only live on war and conquest. 

Russia is peaceful. The Russian peasant has no 
interest in war. They fight well, like all peasants, 
when once at work. But as a simple matter of fact 
many of the Russian prisoners in Gottingen thought 
they had been fighting against FrAuD! 

It will be the greatest blessing to all Europe and 
especially England should Russia be soundly beaten 
and the Baltic Provinces, the Polish Provinces, Bes- 
sarabia and the Caucausus fall away, and a free 
Russia enter at last upon the industrial and agrarian 
reforms that can alone save her. 

Nothing would be more desperately evil for the 
Balkan States than the Hegemony of Russia. It 
would mean a militarism with a vengeance. It 
would sound the doom of all religious freedom and 
social aspiration. It would force the mystic super- 
stitions, the autocracy knows so well to prostitute to 
political purpose upon all the Balkan races. Tolstoy 
said the autocracy had itself ceased to believe in 
these mystic superstitions, but simply forced them 
on the people for its own purpose. Whether this be 
so or not these superstitions are a principal tool, and 
religious intolerance in Russia makes even Turkish 
fanaticism a haven of refuge. Even Panslavism is 
only a cloak for the ambitions of the autocracy, and 
sad would be the day for Europe and Asia were this 
war to give this corrupt and degenerate political 
power a new lease of life. 

Even France’s gold and American industrial 
plants will be safer in the hands of a defeated but 


51 


reconstructed Russia than in the keeping of a tri- 
umphant court with a victorious army absolutely at 
its disposal. ' 


— 


Lord Kitchener’s Soothing Syrup 
By G. A. HoER te. 


Lord Kitchener’s opinion, that Germany would 
get weaker, the Allies stronger, the more the war 
would be prolonged, is altogether a soothing-syrup 
for home-consumption or an illusion. 

I have been in South Africa during the last six 
months of the Boer War, and have closely observed 
the conditions of the different bodies of troops there 
in service. The most efficient of them were the 
“District Mounted Troops” of the Cape Colony, be- 
cause they were all far above average intelligence, 
perfectly self-reliant, used to handling arms and ex- 
cellent riders. Last, but not least, they knew their 
respective districts and had the good will of the 
negroes, who thoroughly hated the Boers. 

But these excellent troops, especially efficient for 
home-service, the English Commander soon sent to 
the Orange Free State, to new surroundings, en- 
tirely inimical, and where other colonials, or old 
English regulars would have answered as well. 
They were replaced in their home districts, first, by 
Australians, and later on by green English troops, 
the latter all good men, courageous to a fault, but 
many of them unable either to handle a gun or 
straddle a horse. Many of the officers were as 
green as their greenest men. I remember one big 
fat Englishman, a “Commandant” of a District, who 
a year or two before, had been clerking for Sir 
Thomas Lipton. He made a laughing stock of him-, 
self, by issuing an order to house owners to prevent 
their cocks from crowing, as this might give the 


eo 


Boers a signal, and to exercise the already over- 
driven oxen every day, so as to keep them in good 
working order. 

It was easy to detect all the “newly arrived” fora 
great many months, by their awkward ways, and I 
never saw any effort made to drill them in their 
camps, before they were sent to the front, where 
they made good target practice for the opposing 
Boers, when looking about surprised trying to find 
out where the whizzing bullets came from. They 
never reached the efficiency of the other Colonials 
nor of the older soldiers. All in all the different 
Colonials did most of the fighting during the entire 
war. 

Sir Redvers Buller, who so skillfully met the first 
brunt of the fight near Ladysmith, with fifteen thou- 
sand Cape troops and twenty-eight thousand other 
Colonials and old English soldiers, kept in check 
over eighty thousand Boers, by moving all the green 
troops back at night in closed cars, and sending 
them the following day to the front again, with all 
the military show possible. The Boers, thinking 
‘that Buller had over a hundred thousand men, and 
that his troops were all hiding to wait their attack, 
did not dare to come out of their defensive position 
(which had always the advantage of the inner line 
during the entire war) until the positive orders ar- 
rived from London for Buller to attack Ladysmith. 
Of course the repulse was only child’s play. After 
the second futile attack, he resigned in disgust, 
much regretted by the English pioneers there. 

The Boers were always better informed than the 
English for the following reasons: There were 
hardly any Boers really loyal to the English in the 
entire Cape Colony-and these were fully two-thirds 
of the population. Of those, who pretended to be 
loyal, many were engaged by the British as spies, 
but they gave only the sham news to their employ-* 


53 


ers, the valuable information being sent to their own 
people, who knew how to make good use of it. This 
condition prevailed until the last battle was fought 
by Lord Kitchener. It is therefore no wonder that 
nearly a quarter of a million men were required to 
subdue eighty thousand Boers. 

Lord Kitchener will learn during the next six 
months that battles will be won in this war not by 
superior numbers, but by superior drill. This he 
could have learned, had he studied carefully (whilst 
he was lying idle in Pretoria for nearly a year, until 
a new Chief of Staff, General Olyphant, roused him 
out of his sleep), the history of Charles XII., who 
when a mere boy of eighteen beat to a rout at Narva 
with only eight thousand well drilled Swedes, over 
sixty thousand Russians under Peter the Great. It 
took nine years before the Russians could conquer 
Charles at all, while Peter required over fifty thou- 
sand men to defeat sixteen thousand Swedes at 
Pultawa. 

Russia is about in the same position today, as she 
was at Pultawa. It will take three of her soldiers 
to beat one German. Russia had been in a plight 
after her war with Japan. There could hardly have 
been any good drill-masters in Russia, even before 
that war, or she would not have been compelled to 
enroll so many green men in both her army and 
navy, as all foreign war correspondents had re- 
ported. 

To educate a common Russian soldier to be a 
good drill-sergeant requires on an average, three or 
four years; and even then, owing to lack of fit 
teachers, they are not equal to those of France or 
Austria. But no European country has ever ap- 
proached the efficient system of Germany, a system 
which has permeated not only her army, but also 
her whole nation; and is really the cause of her ever 
growing industrial supremacy. In one word it is 


54 


the Kaiser’s “Mailed Fist” which has made his peo- 
ple wealthy. But like her most dangerous rival, 
Japan, she is wise enough to hide her real strength. 
All we can do is to approximate from her past mode 
of drilling. The population of Germany is sixty- 
five millions, of which one out of five are males over 
twenty and under fifty years. She could easily 
mobilize for field-service nearly every man under 
fifty, besides half of those between fifty and sixty. 
All of her older men could be sent, if necessary, for 
service to her fortresses, where they could drill all 
the younger men down to the age of seventeen, as 
well as a great many supernumeries still fit for ser- 
vice, but hitherto not recruited, up to the age of 
fifty. 

In this way Germany can finally command an 
army of nearly fifteen millions of fighting men, 
enough to exhaust even populous Russia. It is evi- 
dent, therefore, that whatever battles the latter will 
win, will be at the beginning, not at the end of this 
war. The Russian wheatfields will be the prize of 
the victors. 

Owing to her less fortunate financial conditions, 
Austria is not so well prepared, but still her own 
second and third calls will be strong enough to de- 
fend her Italian and Servian borders. 

Nor will Austria or Germany have to starve as 
many think, for even the latter is self-supporting, 
though Austria may have to help her ally with field 
workers. Nor must we expect a long drawn out 
war, as Lord Kitchener seems to think. His own 
country will need peace long before any of the Con- 
tinental Powers. A revolution in India is certain to 
break out before long, well stirred up by her friend 
and ally, Japan. Then she will repent her deaf ears 
to the Kaiser’s warnings and entreaties in 1900 and 
1908 ; but then it will be to late. 

Finally, when Sweden sees that Russia is far 


oh 


from having an easy promenade to Berlin, she and 
Finland may want to take a hand in this game; for 
Finland and the entire Baltic Provinces, even the 
very soil upon which stands St. Petersburg, was 
taken from her in a more brutal way, than any pro- 
vince from any country in Europe; just because she 
was a weak nation and could not help herself. Fin- 
land was invaded in the middle of peace and: with- 
out even a declaration of war by Alexander L, 
though the King of Sweden was his brother-in-law. 
If Sweden is wise, she will want to belong to the 
German Confederation after peace has been con- 
cluded or Russia will swallow her. 

Still this present war, being really only caused by 
Pan-Slavism, which for the last two hundred years 
has tenfolded its dominion, should have been con- 
ducted only defensively along the French-German 
border, and the invasion of Russia carried on with 
the utmost vigor and speed. There is not a single 
Russian fortress between Warsaw, Moscow and St. 
Petersburg, which could not have been compelled 
to surrender long before the Russian armies could 
have given any succor; and almost without any loss 
to the German armies, as most of them were prac- 
tically defenseless. 

That would have practically decided the war, for 
the German artillery seems to be irresistible. Once 
defended by such guns, handled by well drilled men, 
that part of Russia would have been lost to the Czar 
forever. Less than a million men could have held 
it against all Russia, and France and England would 
not have dared to carry on the war alone. 


56 


Japan Arming School Girls 


Mikado’s Empire Aims to Control China and India 
to Gain World Supremacy 


By G. A. HoERLE 


In 1883, I made the acquaintance of one of the 
first lot of teachers, who were sent from Berlin to 
Japan, at the request of the Mikado, a Dr. Schmidt, 
whom I found by far the cleverest observer and 
judge of future events, I have ever met. He stayed 
over ten years in Japan, and then made a contract 
with the Chinese Ambassador to teach in Pekin, 
where he remained another seven years, and then 
tried to lecture on this subject in Germany, England 
and in this country before empty houses. 

Dr. Schmidt classed the Chinaman, mentally and 
morally, ahead of any of the Asiatic or European 
races, because, for over four thousand years they 
had at different periods attained the highest state of 
civilization ever reached by any people; and he de- 
clares the desire for civilization to be so innate to 
them, that even three hundred years of slavery 
under a tyrannical, warlike dynasty could not eradi- 
cate it. He predicted their sudden awakening at the 
first opportunity given them. 

The correctness of this assertion has been verified 
by the recent occurrences in China, which will have 
a great effect all over the Far-Eastern nations. 

Dr. Schmidt told me that after he had become 
well acquainted with the best educated and brightest 
Japanese, they had never made a secret of their 
ultimate intention of conquering China; and he ad- 
ded, “And they will do it if either the Mikado, 
Okuma or Ito remain alive, for these are the chief 
brains of Japan.” 

I visited Dr. Schmidt quite often and he kept me 
posted about what was happening in the Far East, 


57 


that had escaped the notice of our dailies and peri- 
odicals. The most important item being, that Japan 
had introduced military drill for both sexes, in her 
public schools, both to reduce her army bills and 
keep her military strength secret. 

After the Chino-Japanese War, he said: 

“This means a war with Russia, in less than 
ten years. Japan will win just as surely as she 
has in the last war. After that, poor China will 
be at her mercy, unless the European Sea Powers 
wake up; which is not at all probable. Every one 
of these are so perfectly self-centered and con- 
ceited, that they will treat this matter with con- 
tempt until it is too late!” 

That the German Emperor took heed of the 
meaning of these words he showed when he made 
his so often ridiculed “Yellow Peril’ speech in 1900, 
and referred to this state of affairs in his much 
talked of interview with the prominent Englishman, 
reported by the London Telegraph in 1908, which 
has been re-published quite recently and after 
which his own Reichstag muzzled him. From it I 
quote: 

“Germany looks ahead. Her horizons stretch 
far away. She must be prepared for any eventu- 
ality in the Far East. Who can foresee what may 
take place in the Pacific in the days to come, days 
not so distant as some believe, but days at any 
rate for which all European powers with Far 
Eastern interests ought to steadily prepare? 
Look at the accomplished rise of Japan. Think 
of a possible national awakening in China and 
then judge of the vast problems of the Pacific. 
Only those powers which have great navies will 
be listened to with respect, when the future of 
the Pacific comes to be solved, and if for that 
reason only Germany must have a powerful fleet. 
It may even be that England herself will be glad 


58 


that Germany has a fleet, when they speak to- 

gether in the great debates of the future.” 

These words eight years after the “Yellow Peril” 
speech and ten years after Okuma had given the 
first warning, should be convincing proof that at 
least the Emperor himself wanted peace almost on 
any terms, for he knew where Japan would stand in 
this war. That after he was fully assured war was 
unavoidable he acted with the utmost speed was 
only his bounden duty toward his people. 


Had it not been for the treachery of the French 
Premier, Viviani, the French Legislature would 
never have voted for the three years’ army service, 
demanded from her by the Czar, thus compelling 
Russia to keep the peace. Nor would the English 
Parliament have sanctioned Grey’s act, had they 
known the full truth. There are always some docu- 
ments which never reach public eyes, unless by 
accident in later years, and it is very difficult to 
decide, when the crucial point arrives, which of the 
contending parties is nearest to the truth. 


A similar action of the English Government 
nearly brought Frederick the Great to grief, when 
during the Seven Years War, after Prussian vic- 
tories had secured Hanover for the English Royal 
house and enabled the English troops to conquer the 
French East Indian Colonies, England concluded 
peace and left Frederick to shift for himself. 

To show further that Bismarck also had similar 
experiences with English Governments, I quote 
from “Conversations with Prince Bismarck,” page 


225: 


“The individual Briton is decent, respectable 
and reliable. The reproach of lying is to him the 
most serious of all reproaches . . . English 
policy is the contrary of all that; its dominant 
characteristics is hypocrisy and it employs the 


59 


very methods which the individual Briton de- 

spises.” 

Shortly after the above-mentioned speech, Okuma 
resigned and became founder, main agitator, and 
for many years President of the Pan-Asiatic So- 
ciety, which has supporters and agitators all over 
China, India and all the Malayan Islands. This 
league is no doubt responsible for the Anti- 
European agitators all over the Far East. Today 
Okuma again controls the destinies of Japan, more 
than ever, and is the sole Executor of Mutsuhito’s 
Last Will and Testament. 

For the near future, we Americans need not fear 
for our Pacific Coast, nor even for our Philippine 
Islands. Japan will not fool away time or strength 
in trifles, before she has conquerec and fully di- 
gested both China and India; after that, her simple 
wish will be her command; she will not need even 
to strike a blow. 

Their long history tells us that the peaceful 
Chinese, when forced to it, are as warlike as the 
Japanese, and owing to the contemptous treatment 
all white nations have given them, for over three 
centuries, none of the Eastern nations love us; and 
just for revenge sake, Okuma could even persuade 
the peaceful Chinese to banish us willingly from 
their seas, let alone the three hundred million 
Hindus, who need no urging and are always ready 
to strike a blow against their oppressors. 

What would be the fate of the White race, Teu- 
ton or Latin, Slavic, Semite or Arabic, were Japan 
to conquer China right now, during this very war 
which is devastating Europe? How many mines 
could she lay near the conquered harbors, before 
we would ever know that war existed there? And 
her mines and submarines would be of the most 
deadly type. 

If Japan has found ways and means to hide her 


60 


military armaments by the school-drilling of her 
children, when she was doing it right before the 
eyes of European visitors, fighting mixed-sex bat- 
tles, to my knowledge, as early as 1907, without dis- 
turbing our equanimity she has been certainly able 
to hide her naval preparations, and will do so in 
the future. 

But the blame is ours! Did not England and 
the United States help Japan to get possession of 
the very key to China, by giving her Corea? Did 
not Japan settle there the best and greatest number 
of her troops she was then withdrawing from Man- 
churia without.even our protest? Has she not been 
increasing their numbers annually, by well-drilled 
men and women, these last ten years, by the hun- 
dred thousands each year, setting them well 
equipped near the Chinese borders? 

The only nations who might have prevented this 
conquest are in a suicidal death-struggle, and I am 
not guessing wrong when I say, regardless of what 
Okuma will pretend to do, he knows that this is 
the opportunity for which he has been preparing and 
patiently waiting ever since the Boxer Rebellion. 
He will not let this chance slip! Germany may, or 
may not, acquire her Russian wheat-fields; France 
may, or may not, recover her lost provinces; 
neither Russia nor Australia may gain the lead in 
Pan-Slavism; but as sure as the Holy Writ, all 
the White Races, unless they make at once peace 
at sea and join their navies in the Far-East, will 
have to wish for the days gone by, forever. 

If President Wilson would urge this on the Euro- 
pean nations and direct the attention of Congress 
towards sending our navy to the East, he would do 
a greater service to humanity than by supplying the 
warring nations with food. 


61 


Germany’s Unequalled Record 
By RicHarp M. McCann 
Editor “Waterways and Commerce” 


“An eternal union for the protection of the realm 
and the care and welfare of the German people.” 

These are the words of the Constitution of the 
German Empire defining its character and since the 
adoption of that Constitution, April 16, 1871, the 
rulers of Germany have sedulously and honestly 
endeavored to make the people virtuous, forehanded 
and prosperous. 


The founders of the United States formulated 
under the Constitution a scheme of government 
which if adhered to would have made the States 
of North America the most prosperous and power- 
ful nation that ever inhabited the Earth. For over 
forty years under that Constitution, the United 
States flourished as did no other nation in the his- 
tory of mankind; but the failure on the part of the 
rulers to obey the Constitution has made the United 
States today a dependent nation. The rulers of 
Germany, on the contrary, have scrupulously 
obeyed their Constitution, and as a result the pros- 
perity of Germany has been unequalled in the an- 
nals of nations. 


“The care and welfare of the German people” is 
one of the objects of the Empire’s Constitution. 
Although embracing only one-fifteenth of the area 
of Europe, Germany in 1912 produced one-seventh 
of its wheat, one-fifth of its oats, one-seventh of 
its barley, one-fourth of its rye and one-third of its 
potatoes. If the farmers of the United States had 
as mtch wheat per acre as did the German 
farmers, the wheat crop of the United States would 
have been two and one-half billion bushels instead 


62 


of three-quarters of a billion bushels. More than 
fifty per cent. of the farm area of the United 
States is unimproved while only nine per cent. of 
the available area in Germany is unused. 


In the past twenty-five years the foreign trade 
of Germany increased three hundred per cent., 
while that of Great Britain increased one hundred 
per cent. On January 1, 1913, there were 4,850 
ships of 3,143,000 tons cargo capacity flying the 
German flag and employing 78,000 sailors. Allow- 
ing 10 cents a net ton for the operation of a ship, 
German’s merchant marine approximated an ex- 
penditure of more than a third of a million dollars 
a day—and that expenditure inured to the benefit 
of the world, the United States included. 


The German railroads have been laid out with 
a view to their use by the army. To illustrate: A 
small town in England, France, Russia or the 
United States, has a small railway station with a 
single side track. The same sized town in Germany 
has a big station with a score of sidings and facili- 
ties for entraining or detraining an army corps. 
Every railway station has been planned to handle 
soldiers and munitions of war. 


In 1887, the Kaiser in a speech declared, “Nep- 
tune with the Trident is the symbol for us now that 
we have new tasks to fulfill since the Empire has 
been welded together. Everywhere there are Ger- 
man citizens to protect, everywhere German honor 
to maintain; that Trident must be in our fist.” 


And in 1903, in a speech at Bremen he said: 
“T want to do everything possible to let bayonets 
and cannon rest; but at the same time to keep our 
bayonets sharp and our cannon ready, so that envy 
and grief shall not disturb us in tending our gar- 
dens or building our beautiful houses.” 

That speech was extored from the Kaiser be- 


63 


cause of the criticisms launched by England at Ger- 
many on account of the Naval bill passed by the 
Reichstag in 1900 calling for a fleet of such strength 
that “a war with the mightiest naval power would 
involve risks threatening the supremacy of that 
power.” 


Nothing has been left undone to make the Ger- 
man navy powerful and destructive, especially in 
defense. The Zeppelins have been designed for co- 
operation with their dreadnoughts, being heavily 
armed with heavy calibre, rapid fire guns, above and 
below the gas bags, mounted so that they can cover 
every possible means of approach, fore, aft, broad- 
side. The cruising radius of the Zeppelins is 2,400 
miles and their operating height 12,000 feet, an al- 
titude beyond the range of any surface guns. 


The care and welfare of the people of Germany 
has been as faithfully looked after by the Rulers as 
have the more eye-attracting affairs of state, and 
this care and welfare work extends to the most 
lowly: For instance: 


When a domestic servant reaches the age of sev- 
enty she is retired-with a pension for life earned by 
the insurance she has paid each week in the past. 
Less than two per cent. of the wage earners of 
Germany are out of employment. In England and 
in the United States the unemployed exceed ten 
per cent. In other words, out of every one hun- 
dred men in the United States or England more 
than ten are defective—defective mentally or phys- 
ically, or both. In Germany, only two per cent. are 
defective, because the record of unemployed is 
really a record of defectives. It follows therefore 
that the system of education and rearing of men 
and women in Germany is the better system be- 
cause its results are better. 


Germany has a -system of compulsory savings 


64 


banks. An unmarried man must deposit ten per 
cent. of his wages until the deposits aggregate $500. 
Then the deposits may cease, but the $500 thus 
saved can only be used for the purpose of buying 
a home or furnishing one. The married man must 
deposit five per cent. of his wages until he has set 
aside $500 which can only be used for the purpose 
of furnishing a home or buying one. Because of 
this benificent law a young man cannot spend all 
his earnings in the saloon or the billiard parlor nor 
can the young married man neglect his wife and 
home. Then again, as six per cent. interest is paid 
on these deposits the value of money is taught in 
an impressive manner and individual as well as 
family happiness is secure. 

How this works out for the benefit of the nation 
is shown by a comparison of the savings bank ac- 
counts in Germany and in Great Britain. 


Savings Banks Savings Banks 
Deposits in Deposits in 


Germany Great Britain 
Sb) i $653,450,000 $388,605 ,420 
i). . 1,284,325,000 556,426,795 
JE 2,209,645,000 935,027,800 
(0 EE yh i aren 4.500,000,000 1,109,514,200 


The foregoing table shows that from 1880 to 
1911 the German people have placed $3,800,000,000 
and the British people have placed only $6,950,000 
into the savings banks, while between 1900 and 1911 
the German people have placed $2,295,000,000 and 
the British people only $9,500,000 into the savings 
banks. During these eleven years the German sav- 
ings banks deposits have grown more than eleven 
times as quickly as the British savings banks de- 
posits. It is worth noting that more than $3,500,- 
000,000 of the German savings banks deposits con- 


65 


sist of small sums which have been put into these 
banks by people belonging to the working class. 

The foregoing should suffice to show that Ger- 
many’s abounding prosperity is largely due to hu- 
mane conditions which the far-sightedness of the 
Kaiser have created. Through the short-sighted- 
ness of English administrations these conditions 
have not obtained in the British Isles. . 

The one particular battle which the Kaiser has 
personally waged has been to keep the people from 
forgetting Spartan simplicity while growing in 
wealth. The officers in certain regiments of the 
army some years ago attempted to outdo each other 
in offering the Kaiser entertainment on the occasion 
of his visits. When the Kaiser learned this he is- 
sued an order saying that an elaborate menu would 
be offensive to him and that he desired only the 
plainest fare. 

The discipline of self-denial is practiced in Ger- 
many. When Von Bulow in the Reichstag asked 
all Germany to retrench, the Kaiser set the ex- 
ample by cutting off $5,000,000 a year from the ad- 
ditional funds voted to maintain the fifty-four pal- 
aces throughout the Empire. These palaces are 
maintained so that all Germans will realize that 
each locality is the special care of the Emperor and 
that no one is favored above another. 

The history of the twenty-six states which con- 
stitute the present German Empire is a record of 
wars against Russia, France and Poland. The 
Thirty Years’ War in the first half of the 17th cen- 
tury reduced the population of Germany from 20,- 
000,000 to 6,000,000, but it gave Europe religious 
freedom. 

During the 18th century, Austria attempted to 
stop the growth of Germany and her free institu- 
tion but the military genius of Frederick the Great 
made Prussia foremost among European powers. 


66 


These wars (the Austro Succession, 1741-48, and 
the Seven Years’ War, 1756-1763) cost the lives 
of 1,000,000 men. In Prussia alone, 14,500 houses 
were burned. 

Under the treaty of Vienna, the German states 
were reconstructed into a confederation of which 
Austria received the Presidency. Then Prussia 
proposed a plan of unification of the German states 
with herself as the center of the union. There- 
upon the Seven Weeks’ War broke out. Bismarck 
formed an alliance with Italy under which Russia 
undertook not to make peace until Austria had sur- 
rendered Venice to Italy. A series of Prussian vic- 
tories ending with Sadowa resulted in the Peace of 
Prague. 

And Italy has her Venice today. 

Remember this, ye Italians! 

Shortly thereafter there was a vacancy in the 
Spanish throne, which was offered to Leopold of 
Hohenzollern. He refused it, but France, desiring 
to clip the wings of the Prussian Eagle, demanded 
that Germany give a pledge that no German prince 
should ever aspire to the Spanish throne. Germany 
declined to make such a promise and the Franco- 
Prussian War followed. 

Like France, England today, aiming to cripple 
Germany, demanded that Germany promise not to 
operate its naval fleet in the Baltic against Russia 
or against France along the North Coast of that 
country. The war of the Allies is now on and 
judging by the past the future will certainly show: 

“Deutschland—Deutschland Uber Allies.” 


67 


State Owned Business 


The Government ownership of public utilities in ° 
Germany has reached remarkable proportions. 
This ownership is not only exercised by the Im- 
perial Government, but by the State Governments 
and by the municipalities. In 1911 the Imperial 
Government and the Governments of the German 
States took profits from the various businesses con- 
ducted by them of $282,749,224. Estimating the 
capital value at a 4 per cent. ratio, the value of the 
productive State-owned properties is $7,068,729,- 
OOO. And the Governments continue to follow a 
policy of fresh acquisitions, says Mr. Roberts in his 
book, “Monarchical Socialism.” 


It is declared that in the year under discussion— 
1911—about one-quarter of all the expenses of the 
State and Imperial Governments for the army, the 
navy, and for all other purposes were paid out of 
the net profits on Government business. No to- 
bacco, spirit or match monopolies are among the 
undertakings. Besides the productive ownships of 
the Empire and of the individual States, the cities, 
on their own account, have gone deeply into owner- 
ship of street railways, gas, electricity, water works, 
slaughter houses, market halls, cold storage, canals 
and wharves. Mr. Roberts calls attention to the 
fact that the republics among the States of the Em- 
pire are far more backward in communal ownership 
than the monarchies. 

Of Government-owned properties, the farms are 
worth $198,000,000; the forests, $730,000,000 ; 
mines, $129,000,000; railways, $4,757,000,000 ; tele- 
graphs, telephones, express and mails, $695,000,000, 
and other works, $435,000,000. Upon no depart- 
ment do any of the State Governments lose much 
except upon steamers. 

Much of the trend of public ownership in Ger- 


68 


many may be traced to Bismarck, who declared that 
it was the duty of the State to undertake public 
works that men who desire might work. In 1884 
he laid down the doctrine that if a man comes be- 
fore his fellow citizens and says, “I am healthy, I 
desire to work, but can find no work,” he is en- 
titled to add, “Give me work,” and the State is 
bound to give him work. There is no hostility to 
trusts, and it has been authoritatively stated that 

“economic Germany | is under the absolute rule of 
half a hundred men.’ 


Washington on War 


Said Washington in his fifth annual address to 
the Senate and House of Representatives, January 


8, 1790: 


“A free people ought not only to be armed, but 
disciplined, to which end a uniform and well di- 
gested plan is requisite; and to which end their 
safety and interest require that they should pro- 
mote such manufactures as tend to render them in- 
dependent of others for essential, particularly mil- 
itary supplies.” 

The Senate, January 11, 1790, replying to Wash- 
ington, said: 

“We are persuaded that one of the most effectual 
means of preserving peace is to be prepared for 
war, and our attention shall be directed to the ob- 
jects of common defense and the adoption of such 
plans as shall appear the most likely to prevent our 
dependence on other countries for essential sup- 
plies.” 


In his fifth annual address, December 3, 1793, 
Washington said: 
“The United States ought not to indulge a per- 


69 


suasion that, contrary to the order of human events, 
they will forever keep at a distance those painful 
appeals to arms which the history of every other 
nation abounds. There is a rank due to the United 
States among nations which will be withheld if not 
absolutely lost by the reputation of weakness. If 
we desire to avoid insult, we must be able to repell 
it; if we desire to secure peace, one of the most 
powerful instruments of our rising prosperity, it 
must be known THAT WE ARE AT ALL 
TIMES READY FOR WAR.” 


Sacrificing American Commerce 


“It has become sufficiently certain that the com- 
merce of the United States is to be sacrificed—as 
interfering with the monopoly Great Britain covets 
for her own commerce and navigation. She car- 
ries on a war against the lawful commerce of a 
friend that she may the better carry on a commerce 
with an enemy—a commerce polluted by the forger- 
ies and perjuries which are for the most part the 
only passports by which it can succeed.’’—James 
Madison to Congress, June, 1812. 


Operations of Foreign Exchange 


The most commonly used bills of exchange are 
issued in the currency of England, France and 
Germany; that is, in pounds sterling, francs and 
reichsmarks. Quotations, which look complicated 
and unintelligible, are nothing of the sort. The 
quotation of pounds sterling, for example, is, say, 
4.90. All that means is that one English pound is 
worth $4.90 in American money. Francs are 
quoted in French money. When the quotation 


70 


reads 5.15, the explanation is that $1 United States 
money will buy 515-100 francs, or 5 francs 15 
centimes. A quotation for reichmarks of 95 indi- 
cates that 95 cents will purchase 4 reichsmarks. A 
movement in pounds sterling from 4.90 to 4.95, or 
a movement in reichsmarks from 95 to 96, is ob- 
viously an upward movement, but when francs go 
from 5.15 to 5.18 the market is going down, because 
your dollar will buy more French money, which is 
becoming cheaper. 

The price of foreign exchange is what regulates 
gold movements. Because London is the financial 
capital of the world, the trend of the rate for 
pounds sterling is what American bankers watch. 
The British pound, when it is full weight, has a 
gold value in American money of $4.865%. That is 
called the parity of exchange. American merchants 
who buy goods abroad as a general rule make their 
payments through London and in English money. 
They buy pounds for this purpose. When they can 
buy pounds at the parity of exchange, or up to 1% 
cents to 2 cents higher, they do so. But when the 
price of pounds goes above that limit, it is cheaper 
to take American gold and send that over. Here is 
why that is done: 

As stated, an English pound of full weight is 
worth at a United States mint, $4.8654. Naturally, 
a merchant cannot afford to pay much above this 
price for his pounds. If the price is too high he 
can buy gold in this country and send that. But 
if he does the operation will cost him something. 
There is insurance to be paid and there is the loss 
of the use of the money for the interval in which 
it is being transported across the Atlantic. Also, 
there is the loss in the weight, which means the 
value, of the gold by abrasion. Gold is soft and 
the action of the waves, causing the gold to jounce 
arounds, rubs off part of it. All this counts and 


71 


experts have estimated that these necessary charges 
amount to about one and one-half cents to the 
pound when the shipment is in gold bars, and to 
something more than two cents a pound when gold 
coin is used. The reason for the difference between 
bars and coin is that gold bars usually are worth 
between $300 and $450 each, while gold coin is 
generally sent in denominations of $10 and $20. A 
bar has six surfaces exposed to abrasion, while a 
coin has only two and the edges, but in a shipment 
of $1,000,000 in bars averaging $400 each, there 
would be only 2,500 bars, with 15,000 surfaces, 
while $1,000,000 in $20 gold pieces would contain 
50,000 coins and 100,000 surfaces, not including the 
edges. So the coin loses more than the bars and 
the cost of shipping is higher. 

With these transportation expenses to be reck- 
oned with, the price of sterling exchange must go 
one and one-half to two cents above the parity of 
exchange before gold is sent out of the country. 
In other words, it must be in the neighborhood of 
4.88 to 4.8814. That is what is called the nominal 
export point of exchange. _When the rate goes 
down to 4.84% bankers say that the nominal im- 
port price has been reached and gold imports may 
be expected, because the rules works as well one 
way as the other. What causes the rate to advance 
is that there are more American debts to be settled 
abroad than there are European debts to be settled 
with us. When the situation is reversed, and Eu- 
rope owes us more than we owe her, then the rate 
goes down, and if it goes down enough Europe 
has to send us gold. But Europe has several ad- 
vantages which we do not possess. There are semi- 
governmental banks which, while they cannot oper- 
ate against great international movements, can, 
when the proposition is fairly close, swing the bal- 
ance in favor of their own countries. Also, several 


72 


countries impose export taxes on gold, which prac- 
tically makes it impossible to get the metal away 
from them when they want to hold it. The United 
States, under the Constitution, cannot impose any 
export tax. 

In the financial district—Wall Street—as it is 
generally referred to, the foreign exchange brokers 
have their own particular section. They congregate 
around the corner of Wall and William streets, 
where, in obedience to the laws of affinity, all the 
banks and the brokers who deal in this form of 
financial paper send their representatives. Just as 
little is known about the workings of the Foreign 
Exchange market by the average person, so is the 
amount of general information regarding the physi- 
cal manifestations of the market limited. The 
Stock Exchange and the Broad Street curb, and of 
late the New Street curb, are widely known, but 
the foreign exchange market down in William 
street is so quiet, outwardly, that few are ever at- 
tracted by it, even though they pass the little group 
of brokers every day. 

These men deal in millions of dollars worth of 
international credit every day when business is 
brisk. The unit of trade is 10,000 pounds, of $50,- 
000, but bills for ten times this size are not un- 
common. ; 

British pounds sterling, worth $4.865¢ in gold 
each, sold during August at as much as $7, and 
francs, which are worth in gold 19 3-10 cents each, 
sold at three for a dollar, or the equivalent of 33 1-3 
cents each. 

Sir George Paish, who for years has been edi- 
tor of the London Statist, and is now the official 
adviser to the Chancellor of the Exchequer, has fig- 
ured prominently in the news concerning the recent 
troubles in the foreign exchange market. Sir 
George is now in this country as a representative of 


73 


the British Government and London bankers gen- 
erally, and it is believed that the results of his con- 
ferences with the members of the Federal Reserve 
Board, collectively, and with the Secretary of the 
Treasury, as well as with many prominent New 
York bankers, will do much to clear up a situation 
that has been unparalleled in financial history. 

The European war has placed England perilously 
near bankruptcy, but its representative, Sir George 
Paish, has been sufficiently adroit to make the 
American people pay a premium for London ex-. 
change, instead of getting it at a discount, and 
more than that he has been able to make a trade for 
cotton at 5 cents a pound, while Germany is will- 
ing to pay 18 cents a pound. In effecting the com- 
promise between this country and London, which is 
the financial capital of Europe, the newly formed 
Federal Reserve Board has had an important part. 
Its future activities will be much concerned with 
this problem of foreign exchange. The people 
should demand that the United States at least adopt 
the semi-governmental banking system of Europe, 
if it does not, as it should, take over the banking 
monopoly of this country. With the banking 
monopoly in the governments of the world there 
would be no more wars. 


Germany Has Food Aplenty for War 


Confidential Councilor Ruebner, founder of what 
is known as the physiology of nutrition and a Ger- 
man economist of wide reputation, publishes in the 
current issue of the Medicinische Wochenschrift, a 
survey of food conditions in Germany. The writer 
deals with the claim of the foreign hostile press that 
Germany, due to its partial isolation in the present 


74 


war, would in very little time be without sufficient 
food. Among the items which he speaks of is milk. 

Germany has at present, claims Councilor Rueb- 
ner, about 11,000,000 milch cows, producing about 
1,150 cubic centimeters of milk per capita each day, 
while the average consumption per person is only 
341 cubic centimeters in Germany, in addition to 
18 grams of cheese and 7.8 grams of butter. 

“It is plain,’ says the writer, “that we have a 
superfluity in this class of food. In case the con- 
sumption of butter is reduced 1 gram per person the 
saving would amount to about 25,000 tons of butter 
per day, equal to about 750,000 tons of milk. In 
view of the fact that each milch cow pruduces an- 
nually about 2,500 liters of milk, or about 2% tons, 
about 300,000 animals could be killed for food pur- 
poses without interfering seriously with the milk 
supply of Germany.” 

After asserting that the Germans are the biggest 
meat eaters in Europe, Dr. Ruebner gives the fol- 
lowing table of meat consumption per capita for 
Europe: 


Kilograms. 
A a Pee eats 
COU) Cia COM ghia a ae ele ena 47.6 
(apn Rc 5 ae pee ee a ae 33.6 
Poland aid Belgium v........... 33.6 
J obiset Qe ila: 5 aa ae 29.0 
OU CTR pet a a 21.8 
eR ee et oe as 10.4 


German’s demand, the writer asserts, is covered 
fully for the period of the war, and, while forage 
is none too plentiful ordinarily, he believes that 
there will be no difficulty feeding the stock, espe- 
cially if a late winter makes it possible to pasture 
the animals longer than is usually the case. 

A long detailed inspection of Germany’s grain 


75 


supply brings Dr. Reubner to the conclusion that in 
this respect also Germany is far better off than has 
been hoped by her enemies. There is enough wheat 
and rye to meet Germany’s demand during the war, 
and instead of present conditions indicating, as has 
been claimed, a shortage, there is every reason to 
believe that the supply on hand is great enough to 
leave a surplus. — 


Fixing the Blame for War 


Are not five million lives enough! After sixteen 
weeks of war in Europe, statisticians estimate that 
the losses of the combined armies engaged in this 
strife amount to five million human lives! 

As many homes, which formerly were the habi- 
tats of happy families have been destroyed by fire, 
shot and shell in the cities and villages of the Con- 
tinent of Europe. 

But still the carnage goes on. Is there no way 
by which a stop can be put to this slaughter of the 
best and bravest of human. kind? 

When a river overleaps its banks causing injury 
to the adjoining country by inundation, the first act 
is to ascertain the source of the flood and apply 
correction there. If the general public can defi- 
nitely decide upon the aggressor in the present de- 
plorable conflict a public opinion may be formed 
that being directed at the offender should cause a 
halt to his malevolence. 

No American student of the great conflict now 
raging in Europe has a better right to speak with 
authority than Professor William M. Sloane, of 
Columbia University, for his researches into his- 
tory have been among the foremost made by any 
American and his written and spoken utterances 


76 


upon racial tendencies and social significances rank 
among the profoundest of the time. 

Says Prof. Sloane: 

“There was printed recently what the British call 
their ‘White Paper,’ as well as the German ‘White 
Paper.’ The editors of our most important jour- 
nals announced that they had read and _ studied 
those papers with care and that on the face of those 
papers, beyond any peradventure, Germany was the 
aggressor. German militarism had flaunted itself 
as an insult in the face of Europe. Germany had 
violated neutrality. Germany had committed al- 
most ever sin known to international law and there- 
fore the whole German procedure was to be repro- 
bated. 

“Within a very short time a Labor member of 
Parliament, J. Ramsey Macdonald, rises in his 
place, able and fearless, and, on the basis of the 
‘White Paper,’ as published and put in the hands 
of the British public, attacks Sir Edward Grey for 
having so committed Great Britain in advance to 
both Russian and France that, in spite of the rep- 
resentations of the German Ambassador, he dared 
not discuss the question of neutrality. This mem- 
ber of Parliament manifestly belongs to the pow- 
erful anti-war party of Great Britain, a party two 
of whose members, John Burns and Lord Morley, 
resigned from the Cabinet rather than condone in- 
iquity, a party which before the outbreak of the 
_ war made itself heard and felt and protested against 
the participation of Great Britain, desiring localiza- 
tion of the struggle. 

“Mr. Macdonald says that in his opinion this 
talk about the violation of Belgian neutrality, from 
the point of view of British statesmen, is absurd, 
because as long ago as 1870 the plans for the use 
of Belgium, both by France and by Germany—in 
other words, the violation of its neutrality—were in 


77 


the British War Office, and that Mr. Gladstone rose 
in his place and said he was not one of those whose — 
opinion was that a formal guarantee should stand 
so far in thwarting the natural course of events as 
to commit Great Britain to war; and that has been » 
the announced and avowed policy of Great Brit- 
tain all the way down since 1870, and that there- 
fore talk about the violation of Belgian neutrality 
is a mere pretext. 

“That is another instance of this secret agree- 
ment that goes on, which so commits a man like 
Sir Edward Grey that in the pinch, when the Ger- 
man Ambassador substantially proposed to yield 
everything to him and asked him for his proposi- 
tion, he cannot make any. 

“These facts are in the ‘White Paper.’ As far 
as I know, no editor in the United States who 
claims to have studied thoroughly that ‘White 
Paper’ has ever brought this out, and they had not 
been published in that paper at the time when Sir 
Edward Grey and Mr. Asquith made their respec- 
tive speeches and committed the British nation to 
the war. 

“Italy has joined what Italy considered a de- 
fensive alliance, but not an offensive alliance, and 
chose to regard the outbreak of this war as an 
offensive movement on the part of Germany, and 
for that reason has refused to participate in the 
struggle. 


SECRET AGREEMENTS THE RULE 


“T say for that reason because, having been ac- 
customed to reading, all my life, long diplomatic 
documents, really having been trained, you might 
say, almost in the school of Ranke, who was the 
inaugurator of an entirely new school of historical 
writing based on the criticism of ‘historical papers, 
I have come to realize that the dispatches of trained 


78 


diplomats are for the most part purely formal, and 
that while these respective publications of Great 
Britain and of Germany have a certain value, yet 
nevertheless the most important plans are laid in 
the embrasures of windows, where important men 
stand and talk so that no one can hear, or they are 
arranged and often times amplified in private cor- 
respondence which does not see the light until years 
afterward, and that the most important historical 
documents are found in the archives of families, 
members Of which have been the guiding spirits of 
European policy and politics. 

“So that what the secret diplomacy of the last 
years may have been is as yet utterly unknown, and 
certainly will not be known for the generation yet 
to come and perhaps for several generations. The 
student in almost any European capital is given 
complete access to everything on file in the archives, 
including secret documents, only down to a certain 
date. That date differs in various of these store- 
houses, but I think in no case is it later than 1830. 

“If you ask why, there are the sensibilities of 
families to be considered, there is the question of 
hidden policies which they do not care to reveal, 
and then there is the whole matter of who the 
examining student is. For instance, certain very 
important papers were absolutely denied to me, as 
an American, in Great Britain—or at least excuses 
were made if they were not absolutely denied— 
which were opened to an Englishman who was 
working upon the same subject at about the same 
time. 

“The reason for such observations at the pres- 
ent hour is plain enough. Public opinion is formed 
upon what the public is permitted to know and 1s 
not formed upon the actual facts which the public 
is not permitted to know. And for that reason 
Americans, remote as we are for the sources of 


79 


information and especially remote from that most 
delicate of all indications, the pulse of public opin- 
ion in foreign countries, ought to be extremely slow 
to commit themselves to anything.” 

From Bismarck’s Autobiography, Vol. 2, page 
237: “Lord Palmerston did indeed on April 4, 
1856, say to the House of Commons, with an irony 
probably not understood by the mass of the mem- 
bers, that the selection of the papers regarding Kars 
to be laid before the House, had demanded great 
care and attention from persons occupying not a 
subordinate but a high position in the Foreign Of- . 
fice. The Blue Book on Kars, the castrated dis- 
patches of Sir Alexander Burns from Afghanistan 
and the communications of Ministers regarding the 
origin of the note which the Vienna Conference of 
1854 recommended to the Sultan for signature, in- 
stead of that of Mentchikoff are proof of the ease 
with which Parliament and the press of England 
can be deceived.” 


80 


Anglo-American Bankers Resort to 
Boycott 
By RicHarp M. McCann 


The interests that have made and are maintaining 
the war in Europe are the financiers of England and 
of the United States. Not content with decreeing, 
in the first weeks of the war, that a German dol- 
lar would purchase but 50 cents in exchange, they 
have decided upon an absolute boycott against Ger- 
man Exchanges. On November 29, 1914, the news- 
papers printed the announcement that the “British 
Privy Council will lay down two rules, the first of 
which would apply to persons and companies that 
were actually German. It is ‘that all business, com- 
mercial and financial relations between English sub- 
jects, firms and corporations and German firms, 
subjects and corporations in foreign countries shall 
cease and determine.’ 

“It is the second rule that would chiefly affect 
international houses in New York and in the South- 
ern republics. It is ‘that no English subjects, firms 
or corporations shall contract or do any business 
with German firms or corporations, members of 
which are naturalized in neutral countries, when 
the said firms or corporations conduct business 
through agencies or corporations in Germany.’ 

“Tf this order is adopted,’ said one of those in 
touch with the movement under way in London, ‘it 
will open up possibilities of the greatest importance 
to native American bankers. 

““English banking and investment interest have 
come to the conclusion that they might better in- 
vest their money in American securities without 
the intervention of German bankers. If the pro- 
posed order is issued, this would be done, as Eng- 
lish bankers would no longer buy from Germar 


81 


houses, and American corporations could float their 
securities in London only by having them issued by 
banking houses other than German.’ ” 

This boycott is not alone an attack on Germany 
but a blow aimed at industrial enterprise the world 
over, for the reason that Exchange is the life blood 
of industry. The product of the farm and the wage 
of the laborer can only be exchanged for the 
products of the toil of others, which come from 
every part of the globe. Each part of industrial 
society 1s dependent upon every other part. The 
wealth produced in one part must flow, without 
hindrance, into every other part in order to sustain 
the life of the whole. This boycott inaugurated by 
the English and American bankers will stagnate the 
trade of the world. If the life blood of any organ- 
ism stagnates sickness and death follow. Indus- 
trial health and freedom demand that bankers be 
shown of this power over exchange and that such 
a function be performed by the public itself and in 
the public interest. 

These English and American financiers will not 
consent to peace among the warring nations until 
the value of German securities has been depreci- 
ated almost to nothing, when these financiers will 
take over the obligations at a mere pittance. Then 
the terms of peace to which they will assent will 
appear most magnanimous, perhaps without the 
payment of any money indemnity, for the reason 
that money indemnity would go to the treasury of 
the nations and not to the bankers. But the finan- 
clers wil insist that the obligations of Germany be 
met dollar for dollar, giving the financiers $20 for 
every dollar invested, while the nations will get 
nothing in return for the vast war expenditures and 
public losses. 

We hear of depreciation of values in Wall 
Street, of the operations of “Bulls” and “Bears” 


82 


wiping out the patrimony of widows and orphans. 
Infamous as are these operations they cannot meas- 
ure in infamy with this combination of the finan- 
ciers of England and the United States to effect a 
depreciation of securities and values throughout the 
world, by the creation of widows and orphans 
through the sacrifice of the lives of men. 

Will the wage earners of England and America 
continue to supinely wait until the money interests 
have exhausted every resource in their attempt to 
crush Germany to the dust, that they may fasten 
upon the world a money slavery incomparably 
worse than black slavery? Or is money a god and 
the financiers its priests, who may not be questioned 
even by those dying at their hands? 

Our newspapers gloat over the orders from Eng- 
land for millions of dollars’ worth of destructive 
weapons placed in this country through Charles 
Schwab. The people of this country should demand 
that Congress prohibit this traffic and that we be- 
come neutral in practice as in precept. For a na- 
tion, having no grievance against either belligerent, 
to furnish both of them with weapons for mutual 
destruction, is not justifiable under any circum- 
stances; but to furnish one side for a money con- 
sideration, with such devices, when the other side 
cannot be equally supplied, is absolutely criminal. 
It is nothing short of aiding and abetting murder. 

Congress has enacted laws punishing by impris- 
onment conspiracies in restraint of trade. Here we 
find conspirators against the peace and happiness 
of mankind, promoters of war and slayers of men. 
How long will these go unwhipped of justice? 

A few years ago people would laugh at the idea 
that a Rockefeller could be indicted for an offense 
such as the New Haven conspiracy. A Rockefeller 
is under indictment for that offense today. 

The assertion that these financiers, conspiring 


83 


to loot the governments of the world can be 
brought to book may be scoffed at, but their turn 
will come. If the laws of this country are not now 
so framed as to give the requisite authority for the 
indictment and punishment of these misery makers, 
let legislation be enacted at the present session of 
Congress, placing the banking business of the coun- 
try in'the government—the people and for the ben- 
efit of the people. 

The people of the United States cannot know that 
the men in control of finance, transportation and 
manufacturing in the United States are in league 
with the men in control of finance, transportation 
and manufacturing in England, for the purpose of 
monopolizing all the profits of the war even at the 
cost of millions of human lives on the battlefields 
of Europe and millions of human lives through des- 
titution in all other parts of the world. That such 
a band of human despoilers exists is demonstrated 
by the proposed boycott by the British Privy Coun- 
cil. It is also demonstrated by the record of the 
money manipulators in the past and by Anglo- 
American financial arrangements today, which sur- 
pass in plan and scope the money conspiracies 
against the people successfully carried out for the 
last thirty years. 

American cotton is in demand in England as it 
never was before, but instead of purchasing Amer- 
ican cotton at a fair price, England sends to this 
country Sir George Paish, its foremost financier, to 
collect an alleged bill of $250,000,000 due as a bal- 
ance of trade, when as a matter of fact the bal- 
ance of trade is growing daily in favor of the 
United States. In spite of this fact Sir George 
Paish has put through a deal by which England 
gets American cotton at the price American bank- 
ers loaned on it, or 5 cents a pound, though it cost 
the planters 7 cents a pound to grow it. 


84 


The Daily Consular Report, published by the De- 
partment of Commerce and Labor on November 7, 
contained this item: 


The Department of State is in receipt (November 
3) of a cablegram from the American embassy at Ber- 
lin stating that the supply of cotton is about sold out 
in Bremen, which is the principal cotton market of 
Germany. At Hamburg spot cotton is quoted at 90 
pfennigs (19.432 cents per pound) and 85 pfennigs 
(18.352 cents per pound) offered for later delivery, 
with a drop in price likely should new cotton arrive 
in quantity. 


In the interior of Germany—at Stuttgart and 
Munich—the price is 1 mark per half kilo (21.591 
cents per pound); at Magdeburg, 72 pfennigs (15.546 
cents per pound) ; at Coburg, 60 to 65 pfennigs (12.955 
to 14.034 cents per pound) for cotton coming by way 
of Genoa or Swedish ports; at Cologne, 78 pfennigs 
(16.841 cents per pound) delivered at Cologne; at 
Dresden, 75 pfennigs (16.193 cents per pound), this 
being the quotation on October 17. In Leipzig prices 
range from 66 to 107 pfennigs per half kilo (from 
14.25 to 23.102 cents per pound), free Leipzig, ac- 
cording to quality. 

Here we see Leipzig offering 23 cents a pound 
for cotton, a price that would justify the risk of 
sending several shiploads there, but if such an at- 
tempt were successful the boycott against German 
exchange would prevent the shippers cashing their 
drafts. 


Do the people of the United States realize that 
such an infamous transaction will not only ruin the 
cotton growers of the South, but shut down the 
mills of the North, just as soon as the looms in the 
factories over the sea begin to hum? 


Can such a transaction be sanctioned by fe Gov- 
ernment of the United States? The Government 
that Jefferson characterized as “A wise and frugal 
Government, which shall restrain men from injur- 
ing one another, and shall not take from the mouth 
of labor the bread it has earned ?” 


85 


In 1873 the financiers of England paid $500,000 
to reap a profit of $9,000,000 in United States © 
bonds. Of this transaction Senator Daniel of Vir- 
gina, in the Senate, May 22, 1890, said: 

“In 1872, silver being demonetized in Germany, Eng- 
land and Holland, a capital of £100,000 ($500,000) was 
raised, and Ernest Seyd was sent to this country with 
this fund as agent for foreign bondholders to effect 
the same object.” 

This testimony is corroborated by the Congres- 
sional Globe of April 9, 1872, as follows: 


“Ernest Seyd, of London, a distinguished writer 
and bullionist, who is now here, has given great at- 
tention to the subject of mint and coinage. After 
having examined the first draft of this bill (for the 
demonetization of silver), he made various sensible 
suggestions, which the committee adopted and em- 
bodied in the bill.” 

This conspiracy attracted some public attention 
and called forth condemnation, by some of the 
newspapers, long after the money clique had se- 
cured their gains. Among those who exposed the 
conspiracy was Frederick A. Luckenbach, who ap- 
peared before James A. Miller, the Clerk of the 
Supreme Court, at Denver, Colo., on May 6, 1892, 
and made affidavit that as an inventor and busi- 
ness man, at Philadelphia and New York, he had 
made several business visits to London. He be- 
came well acquainted with Mr. Ernest Seyd in Lon- 
don, meeting him first in 1865, and renewing his 
acquaintance with him each year, and “upon each 
occasion became his guest at one or more times, 
joining his family at dinner or other meals.” 

In February, 1874, while at dinner at Mr. Seyd’s 
house, the conversation turned on rumored corrup- 
tion of the British Parliament, and Mr. Seyd told 
him that “he (Seyd) could relate facts about the 
corruption of the American Congress that would 
place it far ahead of the English Parliament in that 


86 


line.” Mr. Luckenbach swore that after dinner Mr. 
Seyd took him apart and made this statement: 


“IT went to America in the winter of 1872-3, au- 
thorized to secure, if I could, a bill demonetizing sil- 
ver. It was to the interest of those I represented— 
the governors of the Bank of England—to have it 

‘done. I took with me £100,000 sterling ($500,000), 
with instructions that if it was not sufficient to ac- 
complish the object, to draw another £100,000, or as 
much as was necessary. J saw the committee of the 
House and Senate, and paid the money and stayed in 
America until I knew the measure was safe.” 


The letter of Ernest Seyd to Mr. Hooper is pub- 
lished in the records of Congress (Senate Mis. Doc., 
No. 29, Fifty-third Congress, first session). It is 
dated “La Princess Street Bank, London, Feb. 17, 
1872,” and among other things of a technical char- 
acter recommends the coining of a silver dollar of 
400 grains legal tender to any amount not exceed- 
ing $100. The panic of 1873 was the direct result 
of this demonetization. 


$500,000 Boucut ContTrot oF Tuts NATION’sS 
FINANCES. 


Under date of October 9, 1877, the following cir- 
cular was sent to all bankers of the country: 


“Dear Sir: It is advisable to do all in your power 
to sustain such prominent daily and weekly news- 
papers, especially the agricultural and religious press, 
as will oppose the issuing of greenback paper money, 
and that you also withhold patronage or favors from 
all applicants who are not willing to oppose the Gov- 
ernment issue of money. Let the Government issue 
the coin, and the banks issue the paper money of the 
country, for then we can better protect each other. 

“To repeal the law creating national bank notes, or 
to restore to circulation the Government issue of 
money, will be to provide the people with money, and 
will, therefore, seriously affect your individual profit 


87 


as bankers and lenders. See your Congressman at 
once, and engage him to support our interests, that we 
may control legislation. 


“JAMES BuELL, Secretary, 
“247 Broadway, N. Y.” 


During the war of the Rebellion the financiers of 
that date, as those of this day, were in league with 
Lombard street, and succeeded in sending gold to a 
premium reaching 185 per cent. in 1864. Charles 
Hazzard, an agent of London capitalists, in 1862, 
issued a circular to New York capitalists, which 
was discovered by Isaac Sharp, in 1873, on file in 
the First National Bank of Council Grove, Kans. 
This circular is as follows: 


“Slavery is likely to be abolished by the war power, 
and chattel slavery destroyed. This, I and my Euro- 
pean friends are in favor of, for slavery is but the 
owning of labor, and carries with it the care of the 
laborer, while the European plan, led on by England, 
is capital control of labor by controlling wages. This 
can be done by controlling the money. The great 
debt, that capitalists will see to it is made out of the 
war, must be used as a measure to control the volume 
of money. To accomplish this, the bonds must be 
used as a banking basis. We are now waiting to get 
the Secretary of the Treasury to make this recommen- 
dation to Congress. It will not do to allow the green- 
back, as it is controlled, to circulate as money any 
length of time, as we cannot control them. But we 
can control the bonds, and through them the bank 
issues.” 


Elsewhere under the title “Fixing the Blame’ 
will be found the authoritative statement that agree- 
ments between nations are actually arranged in 
secret by prominent individuals. In the light of 
these proven money conspiracies is it not fair to 
assume that this terrible war in Europe has its 
source in the machinations of money manipulators? 

Remember that the cotton planters of the South 
are practically destitute, although Germany would 
if permitted enrich them by paying more than 20 


88 


cents a pound for cotton. The cotton mills of 
America are not working to capacity and-England 
will not permit wool from abroad to be sent to this 
country, thereby keeping our woolen mills idle and 
our men and women out of employment. 

Remember that it is only by “hard times” and 
wars that the financiers make colossal fortunes. 
Why will not the people banish “hard times” and 
put an end to war for all time by demanding that 
the government become the banker? 

Germany has set the example of a nation pros- 
pering by having the government participate in the 
banks’ profits and this is the reason English and 
American financiers will sacrifice the flower of the 
world’s manhood to destroy Germany. Let the 
United States improve on Germany’s precedent and 
become the nation’s banker. Let us have no more 
money conspiracies with their attendant evils. Let 
us have no foreign entanglements. 


Let Us Have World Peace. 


89 


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THE KAISER’S ONLY DAUGHTER 


Princess Victoria Louise, Duchess of Brunswick, 
in the Uniform of the Death’s Head Hussars 





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TO PEACE LOVING AMERICANS 


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